Annual Report 2014 2015 0

Annual Report
2014/2015
V I S I O N
Li Wei has photographed 40 employees of the Group in iconic places to celebrate

Pernod Ricards 40th anniversary.
S E E F U R T H E R

S E E B I G G E R

S E E F A S T E R
Chapter Chapter Chapter Chapter
1 2 3 4
SEE FURTHER FOUR ESSENTIALS F O U R AC C E L E R AT O R S FINANCIAL
TO SEE BIGGER T O S E E T H I N G S FA S T E R PERFORMANCE
P. 6 A talk with Alexandre Ricard Operational CSR (Corporate Social Portfolio Innovation
Chairman and Chief Executive Officer Excellence Responsibility) management
of Pernod Ricard
P. 12 A new strategic model: P. 16 The definition given by Gilles Bogaert P. 34 The definition given by Alexandre Ricard P. 60 The definition given by Conor McQuaid P. 82 The definition given by P. 106 Interview of Gilles Bogaert
our 8 business priorities Yves Schladenhaufen
P. 17 Joint interview of P. 35 Joint interview of P. 61 Joint interview of P. 108 The 2014/2015 key figures
Peter Morehead and Aldous Wong Bruno Rain and Nivedita Vermani Janelle Tong, Paco Recuero P. 83 Joint interview of
and Maxime Kouchnir Vincent Beaumont and Brett McKinnon P. 112 In the financial markets
P. 20 Around the world P. 38 Infographic
Operational Excellence The CSR Policy at a glance P. 66 Around the world P. 86 Around the world P. 114 Discover the world of Pernod Ricard
Portfolio management Innovation
P. 40 Special dossier
Promoting responsible consumption: P. 70 Infographic P. 90 Infographic
engaging employees The 4 experiences of convivialit The innovation ecosystem at a glance
Employees: the primary agents of change
P. 92 Highlights on the Kangaroo Fund
The environment: a core concern
An inside look at intrapreneurship
for Group brands
40 years of commitment alongside
our partners and communities
Digital Premiumisation
acceleration & Luxury
Route to market/ P. 72 The definition given by Antonia McCahon P. 94 The definition given by
Talents Consumer Thibaut de Poutier de Sone
P. 73 Joint interview of
Jrmie Moritz and Marc Andr P. 95 Joint interview of
P. 24 The definition given by Bruno Rain P. 48 The definition given by Conor McQuaid Tareef Shawa and Kate Zaman
P. 76 Around the world
P. 25 Joint interview of P. 49 Joint interview of Digital acceleration P. 98 LeCercle and Travel Retail
Estelle Rivals and Christian Campanella Simon van Moppes and Niall Gately Capturing the luxury market
P. 80 Infographic
P. 28 Around the world P. 52 Around the world The digital world is extending its reach P. 100 Around the world
Talents Route to market/Consumer throughout Pernod Ricard Premiumisation & Luxury
P. 32 Infographic P. 56 Infographic
Talents policy at a glance Place the right product at the right place
B RANDS P. 23 P. 87 P. 86/P. 89 MARKE TS

INDEX P. 66/P. 68 P. 22 P. 52/P. 53 INDEX EMEA ASIA
(Europe, Middle East and Africa) P. 68/P. 69
P. 78/P. 79 P. 54 P. 76/P. 77 P. 29
P. 46/P. 47 P. 55 P. 101/P. 103
P. 67/P. 69 P. 100/P. 102 PERNOD RICARD P. 30/P. 31

WINEMAKERS
AMERICAS
P. 79
Profile Li Wei
L I
Li Wei
Chinese
Performance Artist
W E I
Internationally renowned He began his artistic
for his extraordinary career as an oil painter
performance photography, but abandoned the field,
Li Wei depicts his own which he considered too
body and often the bodies traditional. Beginning in
of other performers in 1996, his encounters with
contemporary settings to
create illusions that are equal
the avant-garde artists
who had gravitated to
CHOOSES PERNOD RICARD
parts spectacular and comic, Beijings East Village arts
verging on hilarious. community, such as
Li Wei was born in Central Zhu Ming, prompted him to
China, Hubei province stage public performances. To celebrate Pernod Ricards 40th anniversary,
in 1970. In 1993 he moved Li Wei has emerged as one Li Wei chose to photograph 40 of the 18,000 men
to Beijing, where he still of Chinas most remarkable and women working for the Group.
lives and works. contemporary artists.
Pernod Ricards annual campaign always
features Group employees, and this year
they have been lifted into the air by Li Wei
at historic company sites.
View how the campaign took shape

by scanning this QR code.
Annual Report 2014/2015 Pernod Ricard 2 3

Chapter
S E E F U R T H E R
4 5
See further A talk with Alexandre Ricard
A TALK - Paris -
WITH
ALEXANDRE
RICARD
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Seven LinkedIn users interview Pernod Ricards

new Chairman and Chief Executive Officer. Alexandre Ricard
Chairman and Chief Executive Officer
of Pernod Ricard
On 11 February 2015, Alexandre Ricard

was named Chairman and Chief - Chile - - USA -
Executive Officer of Pernod Ricard
by the Board of Directors. He replaced
Danile Ricard, who had chaired
the Board since 29 August 2012,
and Pierre Pringuet, who served
as CEO for more than 10 years.
Cristian Weinstein Olivia Kiraly
Commercial Manager Senior Research Analyst,
Its been eight months since you What is your ambition? in our four priority battlegrounds China,
On Monday 31 August, in the offices of at Mondelez International Chile Nielsen
became Chairman and CEO of A.R: Our ambition hasnt changed: we the US, and our new growth drivers of In-
Pernod Ricards innovative start-up, the
Pernod Ricard. How are you feeling? want to become the industry leader. We have dia and Africa that task will be difficult to
Breakthrough Innovation Group (BIG),
Do you feel a sense of family everything it takes. But in order to become achieve! We need to develop a daily obses-
AlexandreRicard met with seven followers
responsibility about the decisions the leader, we need to drive growth in our sion with capturing market share by value
F
of Pernod Ricards LinkedIn account from
- France - - India - - Kenya - youll be making? industry. So increasing our sales by value in our key markets and investing in our
around the world. Olivia (US), Cristian
needs to be our top priority. brands without compromising our pricing.
(Chile), Arnold (Kenya), David (New
or me its a source of both great And it is with that in mind that I described
Zealand), Jean-Baptiste (Singapore),
pride and great responsibility You mention growth in sales: what our annual results as a good performance:
Vishal (India) and Anne-Sophie (France)
to be running Pernod Ricard. do you consider the biggest obstacle we were able to accelerate growth in sales,
were the winners of an Internet first:
First and foremost, great pride: towards achieving that growth? which moved back into positive territory
a quiz game about the Group that attracted
obviously Ive been thinking A.R: They arent so much obstacles as (organic sales up 2%, reported sales up 8%),
thousands of contestants. The winners
about my grandfather Paul conditions we need to fulfil. For example, its and we gained market share in the major-
were offered a trip to Paris to meet
Anne-Sophie Bigot Vishal Garg Arnold Sawe Ricard, the Groups co-founder, as well as clear that if we dont win the battle for growth ity of our target markets. These are solid
Alexandre Ricard.
Student in tourism/Brand MBA student Volunteer at a travel agency my uncle Patrick, who, along with Pierre
Ambassador for The Costwolds at the Management Development (safaris) Pringuet and the other members of his team,
He began their discussion by saying,
Distillery Institute (Gurgaon) successfully recast the Group as a global
I wanted the contest to be a perfect
business.
illustration of our tagline: Crateurs de
convivialit.
For me, leading
To be honest, Ive been preparing for this
- New Zealand - - Singapore - Learn more position for a long time, always with enthu- Pernod Ricard means
During the three hours that followed,
the new Chairman and CEO talked about
siasm and peace of mind. With regards to my
family, I have the backing of the reference
being the trustee of
his vision, strategy, and priorities for the
Group, and also discussed major trends
shareholder, S.A. Paul Ricard. Our objective an extraordinary
is clear: to build over time* in order to create
in wine and spirits consumption, speaking
with the visitors as a group as well as
consistently greater value. But that respon- entrepreneurial
sibility you mention I feel that responsi-
in one-on-one conversations.
bility towards every Group employee. For adventure that marked
Heres a summary of his remarks.
David Goldstein
Account Director at IRI Aztec
Jean-Baptiste Forest
Sales Executive at
Discover the video
of the meeting by scanning
me, leading Pernod Ricard means being the
trustee of an extraordinary entrepreneurial
its 40th anniversary
(data solutions) Heritage Beverages Asia this QR code
http://pernod-ricard.com/13757
adventure that marked its 40th anniversary this year.
this year. Today, my responsibility is to con-
tinue that adventure alongside each of the
Groups 18,000 employees.
* Building Over Time is the title of the book written by Patrick Ricard
on the occasion of the Groups 30th anniversary. It was published in 2008.
moment, there needs to be one brand.

Consumers are asking themselves a sim-
ple question: what is the most suitable
brand to go with a special consumption
moment? If, around the world, we succeed
in placing one of our brands at the centre
at each of those moments at a restau-
rant, at home with friends or family, at a
nightclub, during a romantic dinner, and
so on we will naturally emerge as the in-
dustry leader as a result. Even more than
in the past, we need to put consumers at
the centre of our strategy. On their behalf,
lets all be Crateurs de convivialit, just
like our motto says.
What, in concrete terms, is your

strategy for achieving that?
A.R: Basically, its a new combination
of our long-time fundamentals: Decen-
tralisation, Premiumisation, our unique
Culture and our new Growth Drivers. Its
nothing radically new just a new way of
viewing our strategy. At the centre of that
model is our obsession with consumers,
who are the focus of four essentials:
Operational Excellence, in order to work
more efficiently; talent development;
Corporate Social Responsibility; and
Route to market/Consumer, meaning
the way our brands are present, visible
and activated at places of consumption
results, driven by healthy growth. That per- When do you anticipate becoming so as to reach the end consumer. These brand name is already registered, but we responding to that trend. While were talk-
formance prompted us to propose a 10% the industry leader? are coupled with four accelerators: man- have hopes of being able to use the Havana ing about craft-brewed products, I would
increase in our dividend to shareholders, A.R: Dont expect me to give you a pre- agement of our formidable Brand Portfo- Club name. just caution you about a certain level of
consistent with our long-standing policy cise date. Thats not the issue. Leadership lio, Digital Acceleration, Innovation, and hype. Theres nothing more authentic than
of distributing approximately one third of must grow out of a corporate vision, our Premiumisation and Luxury. While all You spoke of portfolio a brand like Absolut, every drop of which
our net profit from recurring operations, vision of how our industry will evolve in these concepts are already familiar, they management, including a number comes from just one spot in the world, a
which rose 12% this year. the future. It should be the natural conse- all need to help us meet a single objective: of widely known brands and a small town in the Skne region of Southern
quence of that vision. increased turnover. cluster of brands in the whiskey Sweden. I would say the same thing about
Do you have any other priorities? segment. Arent you concerned the Jameson House, the Glenlivet House
A.R: I have just two priorities, and the sec- So what is your vision for the Youve chosen a path of organic about competition among your own and the Martell House, which is now
ond has to do with our mindset. The Pernod company? growth. Do you not intend to brands? Or about missing out on celebrating its 300 th anniversary. Those
Ricard success story is first and foremost a A.R: Our vision stems from an obser- expand the Group through external emerging trends like Bourbon and are all centenary brands, each boasting
story of people and personal relationships. vation: consumers are no longer loyal to a growth, as in the past? craft-brewed products in the US, its own history and connection with the
No matter how targeted your strategy is, single brand. Instead, they move among a A.R: At the moment our primary aim or failing to keep pace with land. Its our job to make those brands
it will never be carried out unless everyone variety of brands. For each consumption is to maintain the investment-grade rat- changing tastes? better known to consumers!
in each area of activity is striving towards the ing weve obtained from the ratings agen- A.R: We have one of the most compre-
same goal. Thats why every Group employee cies and focus on tactical acquisitions to hensive portfolios in the industry, with a
needs to understand the challenges we face strengthen our portfolio in our key mar- presence in every market segment. As a
and our goal of taking the appropriate action kets. Our two recent acquisitions in the result, we can respond to virtually every
in the field, motivated by the same mindset: United States our majority share in Avin consumer preference. As for the latest
a spirit of conquest, an entrepreneurial tequila and our acquisition of Kenwood trends, we rely on innovation to keep pace.
spirit in sum, a desire to win. No matter how wines are prime examples of that. You mentioned how consumers in the
US, in particular, have developed a keen
As leader, how is it possible for you targeted your strategy You mention the US market. interest in Bourbon. Its true that, strict-
manage 18,000 people? What do you foresee regarding the ly speaking, we dont have any bourbon
A.R: Thats the goal of that second pri- is, it will never be normalisation of Cuban-American products in our portfolio, but you have to
ority: our mindset. We need to ensure that
everyone has the power to take action. When
carried out unless relations?
A.R: First and foremost its very good
consider the market for brown alcohols as
a whole: just look at the double-digit sales
employees are empowered at their own level, everyone in each area news for both the Cuban and American growth for Jameson, The Glenlivet and
they can throw all their support behind our people. For our part, it will all depend on Martell. With regard to craft-brewed and
project. That means simplifying our proce- of activity is striving whether the embargo is lifted, which is so-called artisanal brands, I believe that
dures in order to concentrate on our pri-
orities, sharing our expertise, accelerating towards the same goal. something for the US Congress to decide.
Although there is still a long road ahead,
our most recent product launches, such
as Jameson Caskmates, which brings to-
our decision-making, encouraging cross- we are already preparing for that even- gether the world of beer and Irish whis-
departmental collaboration, breaking down tuality so that one day we can be among key, or Absolut Oak, the first vodka to be
barriers and emphasising execution. Thats the first to offer American consumers an aged in oak barrels, not to mention Barrel-
the only way to unleash our creative energy. authentic Cuban Rum. The Havanista house whiskey, represent various ways of

You talk about returning the focus

to consumers. I come from Kenya,
where there are a lot of beer lovers.
Do you anticipate diversifying into
that market?
A.R: Africa is our new frontier: it will
be comparable to Asia in 15 years! Weve
just opened our seventh African affiliate,
in Mozambique, and the growth in sales
across sub-Saharan Africa, which includes
Kenya, is approaching 20%. To answer
your specific question about diversifying
into beer, its not something we foresee at
the moment. We have made some tacti-
cal moves, such as our launch of the first
Malibu Beer in the Netherlands, but fun-
damentally our strategy remains the same:
to support consumers ascending the val-
ue ladder. In Africa that means encour-
aging them to trade up from local brands
to Passport Scotch, and subsequently to
Ballantines or Chivas.
Im curious to know if your

research centre is exploring new
growth drivers in the segment
of traditional local beverages?
Im from Chile and naturally Rosso in Germany, the very promising Asia, especially China, has been pricing policy, weve beefed up our sales
Im thinking about Pisco. Absolut Elyx, our Avin and Altos tequi- occupying everyones attention for force, and were currently expanding our
A.R: I cant reveal everything right las, the connected bottle from Mumm, and several months now. What are you media buys.
now but yes, we do have some projects more. As for Project Gutenberg, its in the going to do to address the situation?
of that kind underway. Moreover, the consumer test phase in London and Paris A.R: First let me remind you that Asia What is your outlook for growth?
Youth Action Council, an internal group
that brings together employees from the
We have made some and thats all I can say at the moment! experienced a recovery this year, with
growth rebounding from -4% to +4%.
A.R: We have announced our intention
of returning to a path of medium-term sales
younger generation, is working on an ini- tactical moves, but This year India became the Thats a very impressive performance. growth of approximately 4 to 5%. Our vision
tiative along those lines. I can tell you this Groups third largest market, With regard to China, which is our second is clear and our ambitions are stronger than
much: it has to do with Mexico. fundamentally our ahead of France. What are the most biggest market, in just one year we went ever, backed by a solid strategy as reflected in
promising market segments in from a 23% drop in sales to just a 2% de- our impressive results for the past year. Yes,
Innovation and digital technology strategy remains India, and do you see vodka as cline. Congratulations go to our employ- our operating environment is difficult, even
are two other accelerators. Can you
tell us where things stand with the
the same: to support a future growth driver in
the Indian market?
ees there. Even though were holding firm
and even gaining market share, the market
volatile. But its precisely in circumstances
such as these that we need to maintain a
Project Gutenberg connected-bar consumers ascending A.R: With 18% growth in sales, India is still on a downward trajectory, caught steady hand at the helm. Today our organ-
concept? turned in an excellent performance, and between the governments crackdown on isation is more agile and we can capitalise
A.R: More than 25 million in savings the value ladder. Id like to hail the work of our staff there. extravaganza and the latest macroeco- on the breadth of our portfolio and our bal-
achieved through our Allegro campaign for India is a fascinating market with sizable nomic upheavals, which offer the Chinese anced global presence to adapt as needed
operational efficiency has been reinvest- potential: more than 22 million people little reason to go out and celebrate. For and allocate our resources more quickly and
ed in support of our priority innovations. reach the legal age of alcohol consumption the short term, prudence is still our watch- effectively. But we need to remain firmly fo-
Weve seen some wonderful achievements each year. Thats 220 million people over word. Nonetheless, I continue to have cused on the course ahead and the strategy
this year, such as Ramazzotti Aperitivo the course of a decade. Can you imagine? confidence in the market fundamentals for reaching our goal. For the coming year we
The Indian market offers a perfect illustra- over the medium term. are still aiming for a gradual improvement in
tion of our expansion strategy: strong local turnover, and we will continue to invest in
brands, in this case our Indian whiskies, Could you return to the write-down our brands and innovations, with a special
which are a gateway to our Premium in-
ternational brands. As for vodka, Absolut
of Absolut? What impact is that
having on the Group?
Our vision is clear focus on Operational Excellence.
has just passed the milestone of 100,000 A.R: It has no impact on our operations and our ambitions
cases. So thats a very promising segment. or cash flow. Its an accounting adjustment
But although its been surpassed in sales, that we needed to make in order to better are stronger than
France remains our historic strong-
hold, accounting for 8% of our turnover.
reflect the brands prospects for growth in
a segment that has been extremely turbu-
ever, backed by a solid
The French market has contracted slight- lent over the past two years. The real is- strategy as reflected in
ly, but were still gaining market share in sue is not the write-down, but rather the
every segment, despite a difficult econom- 5% decline in sales in our biggest market, our impressive results
ic environment and a highly competitive
market.
the United States. Our objective over the
medium term is to stabilise the Absolut for the past year.
brand. Were now moving ahead with an
ambitious marketing and sales initiative.
Weve changed the design of the Absolut
bottle for the first time in thirty years.
We are in the process of rolling out a new

See further 8 business priorities
A new strategic model:

our 8 business priorities
Pernod Ricards new strategic policy does not represent a radical change: its a new
synthesis that brings together all of the Groups traditional tenets decentralisation,
Premiumisation and a unique corporate culture plus new growth drivers, to create
a single strategic model containing eight business priorities.
This model is centred on consumers, who are the focus of four essentials: Operational
Excellence, Talent Development, Sustainability & Responsibility and Route to market/ CONSUMER AT THE HEART
Consumer. These are coupled with four accelerators: Portfolio Management,
OUR BUSINESS PRIORITIES - DEFINED
Digital Acceleration, Innovation, and Premiumisation and Luxury. These eight priorities
must all contribute to a single objective: increased turnover.
OPERATIONAL EXCELLENCE PORTFOLIO MANAGEMENT
Optimise our portfolio for maximum

Reduce completixity & foster efficiency.
competitive advantage.
TALENT DEVELOPMENT DIGITAL ACCELERATION
Accelerate the integration of digital

Recruit, retain & develop diverse teams.
into everything we do.
SUSTAINABILITY & RESPONSIBILITY INNOVATION
Lead the industry in sustainability & Experiences, services &

responsibility. products to scale.
ROUTE TO MARKET/CONSUMER PREMIUMISATION AND LUXURY
Prioritise our channel focus and engage Premiumise the portfolio & lead
our customers. the luxury segment.
4 Essentials for capitalising on our fundamental principles 4 Accelerators for gaining speed in our operations
The 4 Essentials should be viewed as the foundation on which the The third essential, Sustainability & Responsibility, has long The 4 Accelerators are major growth drivers for Pernod Ricard. Innovation is a time-tested component of Pernod Ricards
4 Accelerators will rest. The aim of Operational Excellence is been a Pernod Ricard mainstay and now needs to be taken even Thanks to a Portfolio Management that is among the most strategy and remains the critical nexus of the Groups future
to streamline our procedures by taking advantage of our uniquely further, to encompass the Groups entire brand territory and comprehensive in the industry, the Group can capitalise on growth when it comes to services, experiences and custom-
decentralised organisation. By setting priorities, simplifying become a driver of positive, long-term growth. Lastly, Routeto every moment for consumption and convivialit. The goal is tailored products: an entire ecosystem focusing on innovations
tasks and pooling resources, the Group can redouble the speed market/Consumer is a critical concern: it determines how our simple: to place the most appropriate product from the portfolio with high potential. The last accelerator is Premiumisation
and agility of its organisation. Our second priority is Talent brands are available, visible and activated among consumers within at the centre of each of these moments. Digital Acceleration and Luxury: continuing our efforts to move our brand portfolio
Development: the Group capitalises on its unique culture both to both traditional distribution channels (On-Trade, Off-Ttrade and is another growth driver, one that can now give us a worldwide upmarket and capture the luxury market with the aim of
develop its in-house staff and to attract talented new employees. Travel Retail) and new ones (e-Commerce and Home-Trade). presence as we seek to build a direct relationship with consumers. becoming the market leader.

Four essentials to see bigger Four accelerators to see things faster Chapter
Operational
Excellence
Talents CSR
Route to market/
Consumer
Portfolio
management
Digital
acceleration
Innovation Premiumisation
& Luxury
2
F O U R
E S S E N T I A L S
TO SEE
BIGGER 14 15
Four essentials to see bigger Operational Excellence
The definition Operational Excellence 01 Joint interview

given by Gilles Bogaert
G
roup Operations Director Peter Morehead and Aldous Wong, Chief Information
Officer for Pernod Ricard Asia, share a mission: to make our organisational structure
and procedures less complex. Their goal is to give Pernod Ricard teams the means to do
what they do best: apply craftsmanship to transform the finest raw materials into the industrys
best wine and spirits portfolio.
ARE THERE OPERATIONAL
Operational
BENEFITS FROM THE
COLLABORATION BETWEEN
YOUR TWO ORGANISATIONS?
P. M.: Yes, and the anti-counterfeiting
project is a perfect illustration. It involves
headquarters teams from Paris (Supply
Excellence
Chain, Legal, Research and IT) combining
with teams from the Asia regional organi-
Peter Morehead Aldous Wong sation (Pernod Ricard China), Brand Com-
Group Operations Director Chief Information Officer, panies such as Martell bottling plants based
Pernod Ricard Asia in Cognac, and Chivas in Scotland: the top
experts from throughout Pernod Ricard
all coming together to develop and deliver
a unique solution, the Internet of Bottles
WHAT IS THE SCOPE OF (see QR code). That innovation is not only a
OPERATIONAL EXCELLENCE? response to the problem in Asian markets
Peter Morehead: It encompasses three and elsewhere, but its also opened a whole
elements. The first, alignment, is designed new field of potential communication with
to ensure that every functional area within consumers.
the Group has a common objective: to pro-
duce and deliver the finest wines and spirits
to meet consumer and customer needs as
precisely and quickly as possible. The sec-
ond is the ongoing search for efficiency, to Key figures
transform the very best raw materials from
exceptional terroirs with quality craftsman-
ship that in some cases dates back centuries,
anchored by a competitive and sustainable
40%
of employees work
in operations
operating model. And the third is lever-
Our goal is to continue improving our
9 million
age: leveraging global standards and local The Beefeater distillery is based in London,
efficiency with regard to both our inter- implementation through our decentralised in the Kennington neighborhood
structure.
departmental procedures and our cost Aldous Wong: For IT at the regional level,
bottles delivered
each day
management across all of the Groups entities it means providing optimal service to our
clients through performance at the highest
and functional areas. That will enable us to take
action more quickly and with greater focus,
possible level of efficiency, whether through
the supply chain, back office or sales and mar-
Local
freeing up resources in support of
keting, in support of their growth strategies. empowerment A. W.: The Asia market has worked
A key priority across the Asia region is infor- with Brand Companies for years to com-
Pernod Ricards growth. mation flow, ensuring integration of systems is a source bat counterfeiting. The Internet of Bottles,
and seamlessness of data and communica-
tion across multiple entities. of competitive the first applied IT solution, is designed to
give consumers a guarantee of each bottles
Gilles Bogaert
HOW IS DECENTRALISATION
advantage. authenticity through a system of traceabil-
ity. It involves placing QR code stickers on
Managing Director, Finance & Operations FUNDAMENTAL TO OPERATIONAL bottle caps that, when scanned, reveal the
EXCELLENCE? bottles complete identity and history. Were
P. M.: Decentralisation reflects the re- now rolling out enhanced monitoring and
spect and trust for the know-how that exists exploring how to implement RFID* tech-
at the operational level. Cultivating the pride, nology, which allows a more efficient scan-
passion and spirit of collaboration produced ning. As Peter says, while initially aimed at
through this decentralized model enables us tracking and preventing counterfeiting, our
to do what we do best. Whether its a plant in collaborative effort also identified the po-
To learn more
Cognac with a 300-year-old heritage or the Learn more about the Internet
tential for crossover to consumer engage-
https://youtu.be/tOpJfDDA5Qw perfect balance struck by a master whisky of Bottles by scanning this QR code ment initiatives.
distiller, local empowerment is a source of https://www.youtube.com/watch?v=Gnl7N2Pgwag
competitive advantage. * Radio-Frequency Identification.
16 17
The picture
Ysios Bodegas, Pernod Ricard Winemakers
Joseba Llano Amaya Esteban Adrian Murillo

Production & Manufacturing Public relations Production & Manufacturing
19
Portfolio Li Wei
La Guardia, Spain
Raquel Camara Oscar Alvarez

Public relations Production & Manufacturing

Annual Report 2014/2015 Pernod Ricard
https://youtu.be/4acCygtpSG8
Around the world - Key figures - - Irish Distillers Ltd -

MIDLETON DISTILLERY
Overall objective:
150M
UPGRADED TO KEEP
PACE WITH DEMAND FOR
Operational
in recurring cost reductions over IRISH WHISKEY
a three-year period
Operational Excellence can also take the
80M
form of industrial excellence. Following
Excellence
an investment valued at 220 million, the
Midleton Distillery in Ireland is now one of
in cost reductions the most modern and sophisticated whis-
during 2014-2015 key distilleries in the world. Midleton is the
site where Irish Distillers produces Jameson
25M
Irish whiskey, as well as other leading lo-
cal brands (Powers, Paddy, Single Pot Still
brands, Redbreast & Green Spot, Midle-
ton Very Rare). The investment doubled
invested to develop innovative the sites production and storage capacity
projects in 2014/2015 from 33 million to 64 million litres annu-
ally and increased capacity at the Fox &
Geese bottling site in Dublin, Ireland. Irish
THE ALLEGRO PROJECT Distillers Pernod Ricard has also equipped
the distillery with the latest technology in
brewing and distillation as well as water central to our strategic planning for business copper pot stills the largest currently
treatment and waste management. Min- growth, notes Anna Malmhake, Chairman in operation anywhere in the world and
A TRANSFORMATION imizing our environmental impact and maxi- and CEO Irish Distillers Pernod Ricard. The distillation columns that will cut energy
TO HELP US PREPARE FOR THE FUTURE mizing our potential contribution to society are Midleton site now features seven immense use in half.
Brand Companies define strategy and the - Group - An update from Ian FitzSimons, How does this hub equate to greater efficiency?
Market Companies carry out that strategy - France - General Counsel I.F: By pooling our resources, we ensure
in the field; SUPPORT CREATION OF A CENTRAL that intellectual property rights issues are
- simplification, particularly as it applies
DEPARTMENTS POOL HUB FOR INTELLECTUAL Why did Pernod Ricard create this new handled uniformly and we improve our risk
to working methods, to ensure we tackle intellectual property hub? management.
the key issues and accelerate the decision- RESOURCES TO BE PROPERTY I.F: In the past, our Intellectual Property
making process; organisation was built around seven units How did you assemble your team?
- mutualisation, i.e., pooling resources MORE EFFICIENT spread across five countries. Now we have I.F: The GIPH team includes both experi-
and tools and optimising their use. a central team of 12 experts based in Paris. enced staff who were already part of our
The Leaders workshops, which are one
The Group IP Hub (GIPH) is a joint service organisation and new hires. Our goal was
Now finalized in all of the subsidiaries, outgrowth of the Allegro Project in France,
centre acting on behalf of the Brand Com- to establish a team of experts with a com-
the implementation of the new are designed to consolidate the Pernod and
panies to manage IP rights, although those prehensive grasp of issues in intellectual
organization resulted in a net reduction Ricard support functions in Marseilles.
entities are still responsible for campaigns property because the Groups brands
We hear more from Bruno Rain, of 900 positions and in a reduction The challenge is to create a common back-
against counterfeit products because theyre represent our most valuable asset.
Managing Director, Human of the Groups structural costs. bone, capable of supporting two distinct sales
in the best position to assess the severity of
Resources & Corporate Social and marketing teams and, at the same time,
the harm done to their brand.
Responsibility to ensure that no change will be perceived by
- Asia - the customers of the two companies, explains
Continuous implementation of the A SUCCESSFUL Philippe Savinel, Chairman and Chief Ex-
Allegro Project has been a common ecutive officer of Pernod and Ricard. So
theme of the 2014-2015 fiscal year. MERGER OF SUPPORT Pernod and Ricard will each continue to have IN HIS OWN WORDS - Chivas Brothers Ltd
The project has two major objectives. DIVISIONS their independent sales force, and this provides
and The Absolut Company -
The first is to strengthen the Groups us with a competitive edge. France is indeed the Transforming to become a strategic
Operational Excellence while maintaining In Asia, Allegro has prompted the crea- only market in the Group where we activate a value lever for the business
POOL THEIR
its commitment to decentralisation, at a tion of two service hubs: the Hong Kong/ portfolio of 55 brands. More than 160 em- INFORMATION SYSTEMS
time of regulatory constraints and rising Tawan Service Hub for Hong Kong, Ma- ployees have taken part and 140 workshops IT plays two roles. The first is to provide
competition. The second is to position the cao, Taiwan and Asia Travel Retail; and have been held to ensure the new organisa- an excellent level of service at the right In line with the Allegro Project,
tion functions efficiently and the transition cost. In concrete terms that means
company so it can most effectively seize the South-East Asia Service Hub for all of restructuring our ways of working, but
which called for Pernod Ricard to
new growth opportunities, such as digital the markets in the South-East Asia region: proceeds smoothly for everyone involved. also putting into place collaborative work standardise its Information Systems
technology. The project is founded on three Indonesia, Malaysia, the Philippines, Sin- As of 1st July 2015, Pernod and Ricard have platforms such as My Brands* and My to bring them up to date and improve
main principles: gapore, Thailand and Vietnam. The aim of combined their respective Finance, IT, Mathieu Lambotte, Portal Touch**. Our second responsibility user satisfaction, Chivas Brothers
Human Resources, Operations, Legal, Group Chief Information Officer, is to provide IT solutions that will improve
the hubs is twofold: to pool support ser- our competitiveness and maximize the
Ltd and The Absolut Company
- prioritisation, aimed at ensuring that vices (finance, logistics, human resources, Consumer Services and Corporate Com- Information Systems & Technology return on investment for each project. have begun consolidating their IS
each entity is focused on its objectives legal affairs and information systems) while munications departments, which are now networks. The infrastructures have
and on optimising the companys also improving their efficiency to achieve based in Marseilles. merged into a single department
organisational structure. For example, the Operational Excellence. * My Brands: A global and collaborative brand portal to foster market activations locally through the sharing of brand content and activation ideas. as of July 1st 2015.
** My Portal Touch: The Intranet goes mobile with this app. In addition to the usual intranet functionalities, it allows every employee to share social
media brand content on their own feeds.

copper stills and offers production capacity

HIGHLIGHTS of 10million litres of malt whisky per year. HIGHLIGHTS
As Chairman and CEO of Chivas Brothers
5.1M 11.2M
Laurent Lacassagne remarked at the open-
ing ceremony, The distillerys construction is a
clear demonstration of our commitment to invest
as we strive to meet growing world demand for
cases sold Scotch whisky. cases sold
+10% by value
- Chivas Brothers Ltd -
INAUGURATION
- Corby Spirits & Wine Ltd -
FORGING A CLOSER
-1% by value
OF THE DALMUNACH RELATIONSHIP WITH
+13% +16%
DISTILLERY CUSTOMERS
On Monday 22 June 2015, First Minister In order to improve its customer relations,
JAMESON volume in the US of Scotland Nicola Sturgeon opened Dal- Corby Spirits & Wine Ltd has adopted a ABSOLUT volume in the UK
munach, the new distillery built by Chivas number of new online CRM tools. This
Brothers in Speyside. Pernod Ricard in- includes the Greatvines app which, among
vested a total of 35 million in the facility, other features, helps companies respond
the architecture of which is a harmonious to the market more quickly by analysing
blend of tradition and modernity. Built information on customers and prospective
Jameson celebrates Irish Distillers pays homage Re-design of the Oak by Absolut: Vodka rested on oak
St. Patricks Day worldwide to Irish oak on the site of the former Imperial dis- customers, so as to provide service quality Absolut vodka bottle breaks the boundaries of spirits
tillery, the building is equipped with eight that makes the difference.
In Dublin the company unveiled a Introduced in early 2015, Midleton Dair Announced in April 2015, the Absolut bottle The latest bold innovation from Absolut
limited-edition bottle designed by Steve Ghaelach was matured primarily in FOCUS redesign is the first significant change in an oak rested vodka - combines the lightness
Simpson, an award-winning illustrator based American oak bourbon barrels for between 3 decades and brings to the forefront what and energy of vodka with the character of
in the city. Distributed in more than 10 and 24 years and for the first time finished lies at the heart of Absolut the story of One brown spirits, meeting the trend of growing
50 markets, the bottle features images of in virgin native Irish Oak Hogshead casks, A CREATIVE HACKATHON Source (see p. 45). It is sporting some bold brown spirits in the US. Oak by Absolut has
Dublin and quotes from city residents. harvested from Ballaghtobin Estate, Co
Kilkenny. Each bottle in the series can be
FOR SUSTAINABLE updates, including a new logo on the front of
the bottle and a new light-reflecting mark on
been successfully trialed in 3 US cities
this summer.
At Chicagos OHare International
Airport, Hello Dublin was celebrated with
traced back to an individual tree in the Irish PRODUCTION the back for easier identification at night.
estate that the wood was procured from, and The new design will be in shops
an all-new pop-up store. five trees were planted for every tree felled to by the end of 2015.
In the city centre of So Paulo, Brazil, make the Irish oak casks.
a temporary Hello Dublin site that featured
a DJ, light show, jam sessions, ping-pong,
tastings and more attracted more than
1,000 visitors.
Absolut Andy Warhol: I love the bottle, Absolut MakerFest:

I want to do something with it when art merges with technology
Jameson Caskmates: Human Resources honoured
a whiskey with stout notes in Ireland
In 1986 Andy Warhol became the first artist to Launched in Canada in 2014 as part of a national
The Absolut Company invited 16 innovators productive design session generated a host create an original artwork for Absolut. In tribute campaign, the MakerFest experience platform is
Jameson Caskmates, which debuted on The Jameson Graduate programme was to take part in an innovation competition held of new ideas that are currently under review. to this legendary collaboration between the tailored to members of Generation Y, challenging
the market in October 2014, is a true named Most Popular FMCG* Company in in Grndal, Sweden, from 12 to 14 June 2015. During June 14-July 2, Creative Space was artist and the brand, a limited-edition them to join forces with the organisation in
local collaboration. Its particularity: it Ireland for the second consecutive year. Designers, engineers and students working in open for innovators to use as long as they Andy Warhol bottle was released in October creating a unique look at nightlife that blends art
has been matured in barrels which have 2014. 3.5 million bottles were produced and technology. Thanks to partnerships forged
teams of four, backed by experts from Absolut, worked on challenges to create solutions
been seasoned with stout from a nearby * FMCG: Fast Moving Consumer Goods
to mark the occasion. with several renowned artists, the brand has
microbrewery (see p.88), adding a subtle set about finding solutions to environmental for a more sustainable future as part of the
already put together 20 team design events.
note of coffee, cocoa and hops. challenges facing The Absolut Company. Creative Action for Good programme.
The innovative campaign produced some
Participants tackled a range of topics, from astonishing robots capable of serving Absolut
production methods to the use of materials in cocktails with impeccable skill.
the distribution channel and bottle recycling.
And it all took place in a unique setting, with
the company having converted the shipping
containers used for its products into a
temporary/pop-up design studio Creative
Space. The top prize ultimately went to an
engineer, two designers and an entrepreneur,
who came up with a creative eco-design for
a filling process. Their solution optimises
transport and makes a sizable contribution
to sustainable development. This highly

Four essentials to see bigger Talents
The definition Talents 02 Joint interview

given by Bruno Rain
T
alent is key to helping Pernod Ricard consolidate its market leadership. Cultivating
talent represents a sizable challenge for the Group, which needs to take an international
approach to managing in-house talent while still remaining attentive to local market
conditions. We hear from Estelle Rivals, VP HR Organisation & Diversity, and Christian
Campanella, HR Director Pernod Ricard Winemakers.
Key figures
Talents Estelle Rivals

VP HR Organisation & Diversity
Christian Campanella
HR Director Pernod Ricard Winemakers
84%
of employees responded
to the I Say global engagement survey
conducted in June 2015
94%

of employees are proud

to work at Pernod Ricard

WHAT CHALLENGES DOES
PERNOD RICARD FACE
WHEN IT COMES TO TALENT
the age of 30 are all helping to spur momen-
tum and promote mobility (see page 32). Lastly,
the programmes at Pernod Ricard University
87%
of employees would recommend
DEVELOPMENT? have been revised and enhanced with new their company
Estelle Rivals: In order to maintain our functional and leadership curricula. as a good place to work in

94%
growth, we need to invest in building a pool
of diversified, high-performance talent. That
involves taking steps to develop leaders who
of employees fully support
can convey Pernod Ricards values and cor- the values of the Group
porate culture and also strengthen internal
collaboration, which is a critical factor in a
decentralised organisation such as ours. One C.C.: At Pernod Ricard Winemakers, our
Talent is at the core of the Pernod of the ways were meeting that challenge is by first objective was to accelerate the transition
Ricard model. To win the battle of top developing communities of HR experts made towards our new organisational structures
up of professionals from each affiliate, whose after the Allegro project. We then focused
line growth, we need the right people role is to devise global solutions for a range of on building our employer brand, the primary
at the right job at the right time, important topics, such as talent attraction and pillar of our talent policy, concentrating our
international mobility. efforts on programmes for hiring recent uni-
fully engaged behind our strategic Christian Campanella: Pernod Ricard versity graduates. Our talent management
priorities locally & globally. Winemakers has expanded its scope of opera- process is aligned with the corporate policy
tions; its geographical footprint now encom- as well, to give each employee a clearer per-
passes Australia, New Zealand, Spain, China, spective on opportunities for growth.
Argentina and the US. Our talents policy is our
Bruno Rain
way of addressing a variety of challenges but WHAT ARE THE UPCOMING
Managing Director, Human Resources also real opportunities: well be able to cap- CHALLENGES FOR THE TALENTS
& Corporate Social Responsibility italise on a diversified labour force, develop POLICY?
a creative mindset and accelerate our digital E. R.: Gender diversity, diversity of origin,
capabilities. All of those assets will enable us
to attract and keep talented employees and
Gender diversity, diversity in careers and management styles
all of these are key factors in unlocking in-
help them grow. diversity of origin, novation and fostering good decision-mak-
ing. To support this policy, we worked on
WHAT ARE SOME OF THE STEPS diversity in careers and various initiatives: weve appointed a diver-
YOUVE TAKEN THIS YEAR?
E. R.: We've stepped up our presence on management styles all sity ambassador within each affiliate, set
up diversity workshops for management
social media and launched innovative grad-
uate programmes to position Pernod Ricard
of these are key factors and initiated a mentoring programme (see
page 30). Flexibility has been given a role as
as an employer of choice worldwide. As a in unlocking innovation well: each affiliate will now have to retain a
complement to our core iLead Talent Review, certain degree of flexibility over the course
we've implemented development centres to and fostering good of the year.
build up individual leadership development
plans for our talents and improve our Group
decision-making. C.C.: The challenge is to successfully align
our procedures and practices with those of Per-
To learn more Succession Plan (see page 31). In addition, nod Ricard as a whole, while still tailoring them
https://youtu.be/HxUtXt-ZkOw initiatives like iMove, our mobility packag- to local characteristics and conditions. Its that
es and the Youth Action Committee (YAC) combination that will enable us to enhance our
exchange programme for employees under appeal and performance.
24 25
The picture
Absolut Vodka Distillery, The Absolut Company
Elin Nilsson Andreas brink Lina Elg

Logistics Sensorial analysis Finance
27
Portfolio Li Wei
hus, Sweden
Petter Andersson Jesper Hult

Quality Production & Manufacturing

LES FAITS MARQUANTS 2014/2015 DE PERNOD RICARD EMEA
Around the world - Pernod Ricard Italia -

HIGHLIGHTS
SHARING MOMENTS
OF CONVIVIALIT
The Italian affiliate has organised workshops on
creating innovative, path-breaking cocktails, PERNOD RICARD EMEA* 2014/2015
Talents
with employees who have undergone prior *(EUROPE, MIDDLE-EAST AND AFRICA)
training serving as bartenders. Its one way to
+2% +9%
encourage convivialit and creativity, two flag-
Stable
ship components of Pernod Ricards corporate
culture, while instilling a more in-depth knowl-
edge of the companys products.
Sales in Eastern Sales in growth in sales of Top 14
Europe Spain brands in the UK
(driven by Mumm, Absolut
and Jameson)
New responsibilities Marketing: data with

for the IT organisation substantial added value
To ensure faster roll-out of solutions across In August 2014, the region acquired a Data
- Pernod Ricard Winemakers - - Ricard S.A. - the EMEA region, the IT department has been Management Platform (DMP) used to collect
A UNIQUE PROGRAMME RICARD ROLLS restructured and its staff expanded.
The department has a dual responsibility:
data from the web, mobile apps and social
media. Its stated aim is to provide new,
FOR RECENT OUT THE RED it implements systems for streamlining
back-office procedures (ERP, supply chain
concrete insight into markets and consumer
profiles. Another value-added innovation is
UNIVERSITY GRADUATES CARPET FOR NEW and request management), and it installs the Sprinklr application now in use across the
high-performance digital solutions for reducing EMEA region. Its being used to help brand
Pernod Ricard affiliates are adopting innova-
RECRUITS the front-office administrative burden on sales content reach its target, with the aim of
personnel. For example, a mobile app dedicated boosting interest among consumers.
tive programmes to attract and retain talented to sales procedures and best practices will come
staff. The most recent of these can be found at To ease the induction process on stream within the near future.
Pernod Ricard Winemakers. Inspired by Irish for its personnel and simplify
Distillers (Jameson), the company has begun administrative tasks, the Human
a programme for graduates with an entrepre- Resources Department at Ricard has
neurial spirit and a genuine passion for wine. created a digital induction platform
This programme provides an opportunity called Redcarpet in March 2015.
to gain globally recognised industry qualifi- Ingenious and innovative,
cations, vintage experience and spend time graduates head out to one of Pernod Ricard it offers new hires a wealth of helpful
at the companys global head offices to learn Winemakers key established or emerging in- features, including virtual forms and
more about the winemaking business. On ternational markets to act as an ambassador documents and helps new employees
completion of an initial training programme, for the world-famous wine brands. get their footing.
Ramazzotti takes Germany by storm An ad hoc team
An innovation for becoming The challenge: boost Ramazzotti sales and In July 2015, Pernod Ricard set up
- Pernod Ricard UK - the ideal manager! make it the trendy drink in Germany. The operations in Mozambique, a country
- Pernod Ricard Wyborowa - marketing team at Pernod Ricard Deutschland whose situation mirrors that of the
SMART OFFICE SPACE EMPLOYEES ARE Ricardo is the first virtual employee capable found the solution: focus its efforts on other African countries where the
FOR A DIFFERENT OUR BEST BRAND
of challenging managers and enhancing their
managerial skills. Designed by Pernod Ricard
Ramazzotti Rosato, through a winning
combination of an advertising campaign
Group does business: dynamic and full
of opportunities, but with an informal
APPROACH TO WORK AMBASSADORS Espaa and Pernod Ricard Winemakers, this to encourage new drinking occasions and
targeted, efficient distribution. All in under four
economy and parallel imports that
remain pervasive. A nine-person team
personal development mobile app is based on
Gamification and has been designed with actual months! The initiative has produced results: was set up to manage the development
Pernod Ricard UK is offering its employ- scenarios. Its goal is to help managers gain a over 1 million litres of Ramazzotti were sold of the Pernod Ricard brand portfolio
The affiliate is consolidating its
ees a flexible work environment. Staff better understanding of their responsibilities in in 2014/2015. Named innovation of the year directly from within the country, with
investment in training its 340 employees in 2014, Ramazzotti boasts excellent brand the aim of winning over Mozambican
have access to the latest technology and light of Pernod Ricards expectations, such as the
by strengthening their knowledge ability to engage and motivate their personnel, awareness in Germany, where more than two consumers thanks to brands such as
can choose among various types of office
of Pernod Ricard brands. Using a and to improve their manager performance. thirds of consumers are familiar with the aperitif. Jameson, Ballantines, Absolut and
space based on their current needs, goals Olmeca. The new affiliate intends to
newly created e-learning platform,
and tasks. The result has been measurable capitalise on every opportunity for
staff can learn about the history and growth that emerges in the market,
gains in agility and individual and collective
characteristics of each Group brand in order to reach its long-term goal
commitment.
and category and take an entertaining of becoming the top purveyor of
quiz designed to test their knowledge. Premium spirits.
The training has been well received:
more than half of the affiliates sales and
marketing personnel had taken it by the
end of July 2015.

HIGHLIGHTS HIGHLIGHTS
PERNOD RICARD
WINEMAKERS

Stable volumes
Sales down 1%
JACOBS CREEK BRANCOTT ESTATE KENWOOD CAMPO VIEJO GRAFFIGNA
6M
cases sold
2.2Mcases sold
0.5Mcases sold
2.2Mcases sold
0.2Mcases sold
- Group -
TALENT DEVELOPMENT:
-3% +1% +9% -22%

A KEY FACTOR IN THE
GROUPS LEADERSHIP
in value by value by value by value
MODEL
To grow its presence in the US market Pernod
+10% +17% +22% +19%

Ricard acquired Kenwood Vineyards in May
In 2015 Pernod Ricard established the concept
2014, a long-established world-class vineyard
in the Sonoma Valley. of development centres. They have two ob-
in volume in Canada in volume in Australia in volume in the UK in volume in the UK jectives: to evaluate employee potential more
effectively so that targeted development plans
can be defined, and to improve management
Jacobs Creek is innovating with the launch In July 2014 Campo Viejo became Spains first In April, the Argentine brand Graffigna took of corporate succession plans. A pilot has been
Brancott Estate has been acknowledged with
of Double Barrel, a unique range of red wines vineyard to obtain ISO 50001 certification part in the Malbec World Day global road show,
finished in whiskey barrels. This unique range the Best in Nation award for New Zealand by launched in Europe, Asia and the Americas with
San Francisco International Wine Competition. for energy management. one of the worlds biggest wine events. Sales
is the culmination of two years of research staff took the opportunity to visit a variety of 48 managers drawn from every functional area
(see page 87). This prestigious award is given to the winery
which achieves the highest awards for their markets, including Argentina, Mexico, the US, within the company. Meanwhile, Pernod Ricard
respective country. The brand enlisted two street artists, Canada and the UK. University continues to implement programmes
Following the success of the Open Film
Okuda and Remed, to design the bottle art for for developing innovative talent. In recent
Series, Jacobs Creek has launched the Made the limited-edited Reserva vintage. months, new functional modules on various
A large-scale 2.0 campaign was orchestrated
By Films, featuring the worlds number one performance drivers (finance, convivialit and
tennis player and three-time consecutive A group of journalists took part in an online on Facebook and Twitter in support
of the launch. luxury products) have been added to enhance
Australian Open winner Novak Djokovic. tasting of five Brancott Estate Sauvignon Blanc
The campaign has successfully driven mass wines as part of Sauvignon Blanc Day. Equipped the programmes. In addition, the highest level
engagement online and reached more than with a tasting kit, the journalists received live in the leadership model, known as Blenders and
17 million consumers to date. tips, asked questions about the wines on a chat targeting top management, will soon be added
and started a conversation on social media. to the catalogue.
Jacobs Creek has successfully developed Development centres enable us
a number of new innovations in a bid to to objectivize our assessment of
capture key markets and raise the profile of In 2015 Kenwood Vineyards adopted a new
its wines. In the US, the brand introduced brand identity for its Sonoma and Single everyones potential, taking into
Two Lands, a collaboration that marries Vineyard product ranges to differentiate the account other criteria outside of
Californian winemaking craft with Australian brand and anchor the brand in the premium in-job performance.
varietal character. And in China Jacobs Creek segment. The bottles will sport a brand new Two Graffigna wines the Santiago Graffigna
2011 and the Grand Reserve Malbec 2012 were Jaime Jordana,
Milestones has been created to showcase icon, designed to showcase the brands rich
heritage in the Sonoma Valley and its devotion voted among the 10 best Malbec wines as part Group HR Development Director
quality winemaking and the brands rich
history and heritage. to handcrafted wines. of the Malbec World Day events.
- Chivas Brothers Ltd -

- Group - - Pernod Ricard China - - Pernod Ricard India -
ENHANCED
ADVANCES TALENT: A PRIORITY FOR BUILDING A POOL OF
FLEXIBLE WORKING
IN DIVERSITY MORE RAPID GROWTH COMMITTED MANAGERS
HOURS
Pernod Ricard is making new strides in tackling To support Pernod Ricards growth in In order to keep pace with the organisations an individual development plan aimed at
the important topic of diversity with its creation strengthening their engagement. To provide more flexibility
China, Human Resources has launched needs, the Indian affiliate has led an initi-
around working hours and offer
of an ambitious senior mentoring programme. a local iLead programme to identify ative to train 20 high-potential employees
an improved work-life balance
20 top talents (12 women and 8 men) from 12 dif- and manage talented employees. Over in managerial responsibilities. Under the
for employees, Chivas Brothers
ferent countries, representing a range of profes- the past 2 years, 64 staffers enrolled in banner PRIDE, for Pernod Ricard India
has introduced a flexitime work
sions, were selected to receive mentoring from a a customised program that included Developing Excellence, the three-month
policy that includes variable work
Pernod Ricard executive (either a member of the an individual development plan, programme included training at the prestig-
schedules, the option of occasionally
Executive Committee or the Managing Director Leadership Development Center, ious IIM Bangalore campus, along with the working from home and the ability
of a large subsidiary). The goal of the programme training and special workshops opportunity to work in real life business pro- to purchase additional
is to help those being mentored develop a career designed to accelerate succession ject as a team to develop leadership skills. holiday time.
plan and raise their profile within the company. readiness to leadership positions. At the same time, participants received

Infographic
Talents policy
at a glance
Discover at a glance the various HR tools 01 02 03
that Pernod Ricard has developed to
attract skilled employees, help them grow Attracting skilled Helping employees Engaging
and earn their commitment all with the
goal of building and expanding a broad- employees grow employees
based pool of talent.

A STRONG PROGRAMMES INTERNAL MOBILITY PERNOD RICARD THE I SAY
EMPLOYER BRAND FOR UNIVERSITY THROUGH IMOVE UNIVERSITY COMPENSATION
Lide Aguirrezabalaga Unamuno GRADUATES POLICY In 2015, 94% of Pernod
member of the Youth Action Council and As Crateurs de Since 2010, Pernod Ricard Pernod Ricard University Ricard employees
Learning & Development Expert, HR, Pernod Ricard Espaa convivialit, Pernod Ricard affiliates have been using offers an extensive range reported they were proud
Several Group affiliates have The cornerstone of Pernod
offers its employees a the iMove in-house mobility of learning and career to work for the company,
established international Ricards policy is to offer
unique experience. This is platform to announce development opportunities, and 94% of employees
graduate programmes competitive compensation
reflected in our distinctive job vacancies. Employees including e-learning, said they shared its
(see page 28) for recent packages with a strong
values, according to the
Voices of the YAC! employer promise, by
which we ensure that our
university graduates
who have acquired some
worldwide can use the
platform to submit their
classroom training, tastings
and more, encompassing
variable component to
encourage performance.
ISay global commitment
survey conducted
communications with initial career experience. application directly. every occupational area In light of the companys
talented candidates are within the Group. The courses every other year by the
These programmes offer decentralised operations,
consistent worldwide. cover functional, managerial independent consulting
accelerated training in employment offers also
IDENTIFYING and leadership topics. firm Towers Watson.
Joining the YAC offered a wonderful opportunity not which participants gain reflect practices in local
only to gain a birds-eye perspective on the companys a variety of operational TALENTED KEY FIGURES markets as well as
experience within the business priorities.
24
EMPLOYEES WITH
activities by attending global events but also to work on company and its affiliates. iLead
Pernod Ricard projects that are important to Generation Y courses were offered in 2014
employees like myself. The first project we have launched and 2015, including THE YOUTH ACTION
Launched in 2011, the
17
AN ACTIVE PRESENCE COUNCIL
is the Pernod Ricard Youth Network, which aims to iLead talent management
amplify the voice of younger generations within the Group. To learn more: ON SOCIAL MEDIA system serves as a Group- career programmes
http://career.pernod-ricard.com/ wide skills database that Established in June 2014,
To do that, we draw on a network of ambassadors who (5 each in marketing and sales; the YAC is comprised of
en/20/you/vie-international-graduate-
The company regularly can be used to identify 2 each in finance, operations,
relay our key milestones and events at the local level. They programme talented employees within nine employees under the
updates its LinkedIn, and HR; 1 in public affairs) age of 30 nominated by
5
serve as the YACs link to their local top management, by Pinterest and Instagram the company on behalf of
mobility programmes and their peers and drawn from
creating youth groups in the affiliates, supporting the local pages as a way to a wide range of functions
communicate about open succession planning for key personal development courses
implementation of YAC projects or providing feedback. positions. A further benefit and affiliates. Its members
positions, and convey its and draft and implement
is that iLead provides these
2
This is only the beginning: initiatives such as the YAC are corporate culture and its recommendations that
employer promise. employees with a forum for
here to stay. As representatives of the younger generation, discussing their careers, boost the influence of
we have a responsibility to make a commitment to leadership courses younger workers within
job performance, and
contribute to the evolution of our company as well as our
local communities and society at large.
professional development. 2
MOOCs available: Digifit
Pernod Ricard and offer
their perspective and
contributions on matters
and Code of Business affecting the business.
Conduct conduct.

Four essentials to see bigger CSR
The definition CSR 03 Joint interview

given by Alexandre Ricard
C
SR is an intrinsic trait at Pernod Ricard that drives progress and helps the company gain
a competitive edge. Bruno Rain, Managing Director, Human Resources & Corporate
Social Responsibility and Nivedita Vermani, Executive Assistant to MD and CSR
Coordinator, Pernod Ricard India, explain why value creation is part and parcel of CSR.
initiatives and best practices are making sig-

nificant headway. Another progress driver
is the ResponsibALL Day, an annual event
CSR
when the Groups 18,000 employees rally
behind responsible drinking. Pernod Ricard
is now reaping the rewards of its long-term
efforts: our Group is ranked first in the bev-
erage sector by the extra-financial rating
agency Vigeo.
N.V.: Our Asian operations rank first in
Bruno Rain Nivedita Vermani the internal Smart Barometer, reflecting the
Managing Director, Human Resources & Corporate Executive Assistant to MD and CSR Coordinator, deep-seated commitment of all the em-
Social Responsibility Pernod Ricard India ployees in India. We have set four targets
in relation to the Group initiatives: raising
awareness among young adults regarding
the dangers of drink-driving, setting up part-
nerships with the government, NGOs and
HOW DOES THE CSR MODEL retailers, running training sessions on diver-
UNDERPIN LONG-TERM sity and disabilities and establishing health
GROWTH? and hygiene facilities. Our top priority has
Bruno Rain: CSR commitments, which been drink-driving: we toured Delhi/Gur-
form part of Pernod Ricards identity, are gaon successfully with a crashed car and set
fundamental to winning the leadership bat- it up at the motorway police headquarters.
tle, because being a leader means having a A unique digital initiative Alcohol & You
profound sense of responsibility. That is why was implemented. We also accelerated our
CSR is a core component of our DNA. our CSR model is based on a strong under- efforts on Health & Eye Check-up Camps for
lying principle: employees are the frontline HGV drivers.
Fifty years ago, Paul Ricard created the ambassadors of our initiatives. Our goal is
Oceanographic Institute on the island of to act as a responsible leader in the alcoholic
beverage industry.
Les Embiez and two years later, Jean Hmard Nivedita Vermani: In a federal state
created the Institute for Scientific Research like India with complex laws, CSR helps Key figures
500,000
the Group maintain open lines of commu-
on Alcoholic Beverages. CSR must be viewed nication with authorities and stakeholders.
Staging of a crashed car to raise awareness
about the don't drink and drive program
as a strong driver of value creation for our It is also an excellent means of engaging
(Pernod Ricard India)
employees and boosting the performance leaflets are being distributed

brands thats what our customers expect. of our business. In our affiliate, which op- to retailers to raise awareness
about responsible retailing
erates in 29 states and 7 territories, we have
been able to create a strong CSR culture by
Alexandre Ricard appointing liaisons and establishing a clear
Chairman and CEO of Pernod Ricard roadmap that sets forth the corporate goals.
WHY IS CSR NOW HELPING TO
THE CSR MODEL HAS BEEN We are currently DRIVE BRAND STRATEGY?
USED TO FOSTER CONTINUOUS B.R.: Consumers expect brands to make
IMPROVEMENT. ranked first in the a positive impact on their environment, this
WHAT HAVE THE RESULTS
BEEN SO FAR?
beverage sector by the dimension of CSR forms part of Pernod
Ricards heritage. The Group has always con-
B.R.: Our collective commitment has en- extra-financial rating sidered it important to support the develop-
abled us to significantly improve our CSR ment of local communities in the countries
performance. Our empowerment policy has agency Vigeo. where it does business.
expanded over time to include the best prac- N.V.: In India and throughout the Group,
tices of our affiliates and their stakeholders. we have been pursuing our CSR commit-
It grew even stronger with the five commitments for many years. This vision enables
ments that we made in 2012 alongside other us to take action based on a long-term
To learn more industry producers to promote responsible approach and work proactively to meet
https://youtu.be/-DkcWeciLhc drinking (see page40). The Smart Barom- consumers expectations with regard
eter, which measures our efforts to meet to ethics. It truly sets us apart from the
these commitments, shows that our local competition.
34 35
The picture
Strathisla Distillery, Chivas Brothers Limited
Claire Couttie Callum Wright Karen McGillivray

Visitor Centre Marketing Production & Manufacturing Finance Department
37
Portfolio Li Wei
Keith, Scotland
Steven Anderson Gordon Strathdee Keith Nicoll

Production & Manufacturing Production & Manufacturing Production & Manufacturing

4 essentiels
Four essentials
pour voir
to see
plus
bigger
grand
CSR
Infographic
Our priorities
The CSR Policy
at a glance
Promote responsible drinking
95%
of affiliates conducted
100%
of affiliates add a message about
92%
of affiliates display the no alcohol
at least one responsible responsible alcohol consumption for pregnant women
As part of a commitment to Corporate Social Responsibility drinking campaign on their advertising and promotional logo on their bottles
that dates back to its founding, Pernod Ricard has developed in 2014/2015 materials
a model based on four areas that its workforce implements

on a daily basis.
Protect our planet*
96%
of production
78%
of Pernod Ricard vineyards are
-16%
reduction in energy consumption
sites have ISO 14001 certified as compliant with and 26% reduction in CO2 emissions
certification international and local environmental per unit produced at production sites
standards between 2010 and 2015
Develop our local communities
1997
launch of the partnership with
629
suppliers have signed a pledge
60%
of affiliates have conducted at least one
the Centre Pompidou, extended for to comply with sustainability principles initiative in support of local community
nine years in 2013 (at 30 June 2015) development
Empower our employees*

A strong principle underlying our priorities
91%
of permanent employees have
78%
of employees
-7.5%:
decrease of number
had an annual performance have taken part of accidents resulting
and development review in training in a leave
* Figures at 30 June 2015

Special dossier
01
- Pernod Ricard Mexico -
PERNOD RICARD
MEXICO RAMPS UP ITS
Promoting CSR INITIATIVES!

- Pregnant women - The affiliate part-
responsible
nered with the gynaecologists association
FEMEGOG for a prevention initiative on the
risks associated with alcohol consumption
consumption:
during pregnancy, paired with a social media
campaign to further increase its impact.
engaging employees
-Wise Drinking app - Mexico is the coun-
try that uses the app the most, with 20,000
downloads, thanks to strong exposure on
social media and promotion with local
To learn more:
authorities. https://www.youtube.com/watch?v=Izms
Xlk6B4o&list=UUB4700fFrnn_yl-SpbiIMrA
-International transport - Pernod Ricard
Mexico has optimised the size of its shipping
Responsible drinking is A POSITIVE OUTCOME FOR THE ENTIRE 02
ResponsibALL Day 2015 containers and replaced its wood pallets with
INDUSTRY 01. The HQ teams in Paris. slip sheets, which are more compact, result-
a core component of the 02. Alexandre Ricard raises
The industry has made very significant improve- ing in very substantial environmental and
Pernod Ricard model. The ments, as highlighted in the annual report pub-
the awareness of a client.
financial benefits.
Groups approach focuses lished by IARD*. In 2014, the signatories reached
03. ResponsibALL Day
Pernod Ricard Italia.
on three fundamental goals: 2.58 million minors with their awareness-raising
targeting at-risk behaviours initiatives, initiated 375 road safety programmes,
launched a global website providing information on - Pernod Ricard China - - Pernod Ricard Espaa -
and groups such as young responsible drinking, and created a guide that sets A LONG-TERM PREVENTION STARTS
people and pregnant women; forth the principles of responsible digital marketing
taking preventative action for brands. Pernod Ricard leveraged its expansive COMMITMENT ON WITH MINORS
via education and direct retail network to set up tangible initiatives in over BEHALF OF UNDERAGE
65countries, making it the company with the widest
awareness-raising; and geographic coverage for developing youth education DRINKING PREVENTION
bringing affiliates on board programmes.
to address local challenges * International Alliance for Responsible Drinking
Pernod Ricard China established a
5-year partnership with the National
at their root. Institute for Nutrition and Health
of the Chinese Center for Disease
and sometimes 03
Control and Prevention (CDC) in
offbeat information
campaigns targeting 2013, to conduct research and obtain
A flurry of precise consumer insights on drinking behaviors of
initiatives categories, including minors and pregnant women in
a Pernod Ricard Chinas urban cities. On June 5, 2015,
Pernod Ricard has Mexico initiative a No Underage Drinking seminar
expanded its local and aimed at pregnant was held in Guangzhou, which also
EXPANDING ACTION PLANS global initiatives, in
The Group pursued 90 local initiatives in 2014
women and served as a kick-off meeting for the
line with the industry another targeting
nearly four times more than the year before! This nationwide education campaign of
commitments. In motorcyclists by
sharp increase stems from the agreement signed in underage drinking prevention. Pernod Ricard Espaa is lending
2014, the Group Pernod Ricard
2012 at the ICAP (now IARD*) conference, which launched Wise Taiwan. One new its support to Menores ni una
represented an important step forward in the pro- Drinking, the first theme this year, gota (Not a drop for minors),
motion of responsible drinking at global level. global digital app based on one of the an extremely successful campaign
Pernod Ricard made a five-year pledge alongside available in ICAP commitments launched in late 2013 that has reached
13 other major players in the alcoholic beverage 37 languages that made in 2012, is 17 million people and is still underway.
sector to implement ambitious prevention and provides real- an emphasis on Organised by the Spanish National
time indications involving retailers, a Spirits Federation in partnership
awareness-raising programmes and share the
of the quantity of key step in promoting with the countrys Ministry of Health,
results achieved.
alcohol users have responsible drinking. the initiative seeks to raise awareness
consumed, adapted
87,000
among minors of the dangers of
37
These programmes focus on five themes: to local law. The
r educe underage drinking; app has been a clear alcohol, even in small doses.
r educe drinking and driving; success, with over Two separate campaigns are being run
s trengthen and expand marketing codes 87,000 downloads one targeting parents and another
downloads of the Wise number of languages
of practice; as of late August Drinking app
for youth on the theme 100 reasons
in which Wise Drinking
p rovide consumer information and respon- 2015. The affiliates as of late June 2015 is available not to drink. The hugely popular
sible product innovation; have also devised a singer Rayden has spoken out to the
e nlist the support of retailers to reduce number of innovative www.wise-drinking.com/ underage population, heightening the
harmful drinking. impact of the campaign.

Special dossier - Pernod Ricard Korea -

EDUCATING YOUNG
ADULTS BY SPEAKING
Employees: the primary THEIR LANGUAGE
agents of change
Backed by the South Korean ministry of
education, the Check Mate campaign has
proven effective because it taps youth culture
and opinion leaders to deliver its responsible
04
drinking messages. The affiliate has expanded
its initiatives to include partnerships with uni-
Only a responsible, exemplary versity campuses and student associations;
company can demonstrate participation in concerts and festivals; and an
leadership. Thats the principle active social media presence. Students have
that has consistently guided heeded the call to become responsible drink-
ing ambassadors, with nearly 4,000 signing
Pernod Ricard, whose the Pernod Ricard commitment.
employees serve as its frontline
ambassadors. The companys
success is reliant on its CSR
model, which is a direct - Pernod Ricard Taiwan -
outgrowth of Pernod Ricards DRINK-DRIVING:
values: entrepreneurial spirit, A MAJOR CHALLENGE
mutual trust, and a strong sense
of ethics. In Taiwan, 60% of fatal accidents are caused by
young adults on scooters or motorcycles! With
the support of the Taiwan Beverage Alcohol
Forum (TBAF), a leading association, Pernod
Ricard Taiwan launched the Dont Drink and
Ride campaign to encourage young riders to
COMPANY-WIDE EMPLOYEE make smart choices. The campaigns mes-
COMMITMENT sages found a wide audience through press
The Group and its affiliates implement pro- countries organised conferences, promotions on buses and dig-
grammes and tools that accelerate the spread ResponsibALL ital communication. Accidents have shown a
a 5km walk,
of best practices at Group level, including the Day: raising steady decrease since the campaign.
ResponsibALL Move,
Pernod Ricard Charter, code of business conduct, awareness among which symbolised
dedicated intranet site, training sessions and an all industry their five professional
stakeholders commitments.
To learn more:
employer brand platform. These initiatives are https://www.youtube.com/
producing results: in the latest I Say in-house en- Several affiliates watch?v=9Vu2XBjFztY
Each of the Groups also organised local
gagement survey, nearly 80% of employees con-
85 affiliates took part initiatives: a video
firmed that they were taking part in sustainable
in the fifth edition on drink-driving in
development projects. The Group empowers its of ResponsibALL
employees and conveys its values through these Angola produced
Day, which via fundraising,
unique initiatives, like the One Young World Sum- included industry promotion of the
mit, an international conference on sustainable stakeholders, from Wise Drinking app
development for 18 to 30 year olds attended by consumers to in Serbia and India,
nine young Pernod Ricard ambassadors for the retailers. Pernod a focus on ethical
second straight year. During this October 2014 Ricards 5,500 marketing in New
event in Dublin, the ambassadors formed a global salespeople are Zealand, and efforts
think tank to address specific issues such as the currently distributing to reduce underage
circular economy. nearly 500,000 drinking in Brazil.
pamphlets to all their
RESPONSIBALL DAY: customers cafes,
THE GROUPS FLAGSHIP hotels, restaurants
CSR EVENT and large retailers
Held annually since 2011, ResponsibALL Day across the world.
embodies the Groups commitment to CSR. As in previous years,
This worldwide event offers an opportunity for the event featured
educational games,
all employees to devote a day to promoting re-
quizzes, conferences
sponsible drinking through concrete projects.
and sport
The five ICAP (now IARD*) commitments have
competitions. For
served as guiding principles for ResponsibALL
the very first time,
Day since 2013. the 59 participating
* International Alliance for Responsible Drinking

Special dossier - The Absolut Company -

QUALITY AND THE
ENVIRONMENT GO
HAND IN HAND
The Absolut Company produces excellent
The environment:
products through innovation. An approach em-
bodied by the One Source programme, which
guarantees that all customers enjoy the same
a core concern
high quality ingredients, from a single source.
All the raw materials, such as the highly robust
winter wheat from the fields of southern Swe-
for Group brands

den, come from the same place and undergo an
identical distillation process in the brands his-
toric distillery, in compliance with the same strict
standards. The Absolut Company is also a step
ahead of the industry in terms of reducing CO2
emissions. Since 2004, the Nbbelv distillery
has reduced its energy consumption by 45% and
its carbon emissions by 80% per litre of vodka,
while also offsetting its residual emissions to
become carbon-neutral. These achievements
make The Absolut Company one of the most
environmentally efficient distilleries in the world.
Inspired from the beginning by A HIGHLY AMBITIOUS

ROADMAP FOR 2020
company founder Paul Ricard, The first roadmap, drawn up for the 2010-2015 pe- - Pernod Ricard Hellas - - Pernod Ricard Malaysia - - Pernod Ricard Winemakers/
environmental protection is Targets met! riod, mainly targeted production sites. The second, ENCOURAGING A NEW LEASE ON LIFE New Zealand -
deeply rooted in the history of which charts the course to 2020, provides fresh im- ANOTHER STEP
SUSTAINABLE FOR GLASS BOTTLES
Pernod Ricard. The Groups Pernod Ricard followed an petus to Pernod Ricards environmental initiatives by
extending the scope of application beyond industrial AGRICULTURE Set up in partnership with NGOs and opin- TOWARDS GREEN
Premium strategy hinges on environmental roadmap
preserving and passing on the from 2010 to 2015 that set sites, to include all Group entities. The new roadmap ion leaders, the Bottled Hope initiative GROWTH
impact reduction targets is divided into four priorities for action and aims to In October, the affiliate organised a combines all aspects of CSR: benefits for
unique terroir from which for all production sites. develop closer ties between all industry stakeholders, training seminar for aniseed growers on the the community, environmental protection, Following the certification of its vineyards,
each of its brands are produced. Five major commitments including suppliers in particular. It also establishes island of Lesbos who provide raw materials artistic creation and entrepreneurship. Pernod Ricard Winemakers/New Zealand
are now working to recycle their by-
Pernod Ricard pursues stringent were made: new standards throughout the value chain, from for the local brand Ouzo Mini. The event, Through the initiative, nationally and in-
products. The companies have partnered
promote sustainable raw materials to packaging design and the end which was very well received, included ternationally recognised artists transform
initiatives implemented by the agriculture; of the product lifecycle. These include improved information on the dangers of pesticides used bottles supplied by Pernod Ricard into with the Marlborough regions wineries to
action plans of its affiliates, reduce energy detection and assessment of risks related to environ- and the benefits of integrated farming. rechargeable lamps. These works of art are form the Marlborough Grape Marc Group,
reflecting its responsibilities consumption; mental practices (e.g. in regions experiencing water then donated to associations and given to which aims to convert 45,000 metric
tons of marc into compost annually. The
and the issues at stake for conserve water resources; scarcity), greater traceability of agricultural materials rural communities that lack electricity
initiative will soon encompass 80%
promote a sustainable and the use of 100% recycled packaging. a win-win proposition.
the business. A five-year approach to product - Ricard S.A. - of the regions wines.
environmental roadmap was development and reduce A TARGETED BRAND AND CONSUMER RICARD S.A. PLAYS
created in 2010 that organises the impact of waste; STRATEGY
A PART IN THE COP 21 - Pernod Ricard
these commitments into implement efficient Sustainable development quality of ingredients,
Northern Europe -
environmental product lifecycle, social criteria has become a de- The Paul Ricard Oceanographic Institute
priorities with specific targets.
The roadmap is an achievement
management systems. cisive component of brand value and a recognised has become a founding member of the plat- EMPLOYEES FRONT
means of pursuing Premiumisation. With this in form Ocean & Climate. Its goal: to ensure
that has helped the Groups The roadmap drew to a
mind, the Group continued the work undertaken oceans are a central consideration in the
AND CENTRE!
successful conclusion
sustainable practices develop thanks to the affiliates
in 2015 to help its key brands combine sustainable fight against climate change during the global Last March, the affiliates organised a
and accelerated their consistent efforts. All the targets
development, strategy and identity. Four workshops climate conference (COP 21) to be held in weeklong environment event timed to
were conducted at Chivas and Ricard, as well as in Paris in late 2015. What a great way to celebrate coincide with the WWFs Earth Hour
application among affiliates. were reached: energy
Spain and Cuba. This approach forms an integral the Institutes 50th anniversary! - Martell - initiative. Each day had a different theme:
consumption, water
part of the environmental roadmap and is set to ex-
use and CO2 emissions AIMING FOR HQE! energy and climate, water, waste, health, etc.
76% decreased by 16%, 14%

pand progressively over time. T-shirts, posters and stickers were handed
Now that all Martell production sites and out to promote the event and employees were
and 26% respectively per
vineyards are ISO 14001 certified, the brand presented with various challenges, such as
production unit. Solid
Reduction of the amount waste decreased by 76%,
has plans to go a step further and obtain taking photos of creative recycled objects
of solid waste between 2010 and 2015 and 78% of the Groups Haute Qualit Environnementale (HQE) that they found inspirational.
vineyards now hold the certification for its new maturation cellars.
26% applicable environmental The HQE standard includes criteria on site

certification. landscaping and ecology. Martell had its first
audit in early 2015 and is set to become the
Reduction of CO2 emissions first facility to obtain HQE certification in the
between 2010 and 2015 Cognac region.

Special dossier FOCUS HIGHLIGHTS

THE VENTURE:
40 years of
CHIVAS SECURES SUCCESS FOR
SOCIAL ENTREPRENEURS 4.5M
commitment
cases sold
Solutions that serve the community
Launched in August 2014, The Venture has sparked a
great deal of interest: nearly 1,000 applications were
Stable
alongside our
received from five different continents. Chivas Regal
shortlisted 16 projects from as many countries. The
next step was a website-based competition for the first
in value
partners and
share of the prize $250,000 awarded in proportion
to online votes received. The final took place on the
+4%
24th July 2015 in San Francisco and was judged by an
international panel of experts: Sonal Shah, former
communities
Director of the Office of Social Innovation and Civic
Participation in the White House under US President
Barack Obama; Adrian Grenier, actor, producer and
CHIVAS volume in the US
social entrepreneur; Morgan Clendaniel, Editor of
The iconic brand Chivas Regal is supporting Fast Companys Co.Exist; and Group Chairman and
the growth of projects that will help change CEO Alexandre Ricard. Prizes ranging from $75,000 to
The Group creates value the world, through The Venture, a global $300,000 were awarded to the five finalists: a Chilean
on the ground by working social entrepreneurship competition who established a system for bulk distribution of staple A global competition to offer A successful campaign
launched in 2014. Chivas has chosen to back
Code of Business Conduct: in close collaboration with the most promising projects undertaken by the
foods; a South African who invented a low-cost smoke
detector; a Colombian who produces furniture from
a contemporary take
on the classic cocktails
Shared responsibility its stakeholders. From the emerging generation of young entrepreneurs who recycled plastic and coffee husks; a Japanese inventor
The Chivas Win the Right Way videos
were produced specifically for each of the
beginning, Pernod Ricard has have their sights set on building a better world. who designed a water-saving device for agriculture; Chivas Regal launched Chivas Masters, a Groups major markets: Europe, the US
Mutual trust and a strong One million dollars in prize money was shared
sense of ethics are core
made a long-term commitment among global finalists. The initiative was a natural
and a Uruguayan who devised a chip that detects
anomalies in cattle behaviour, remotely, autonomously
global competition to find the worlds best and Asia, to promote The Chivas Venture
bartenders. They were tasked with creating competition. The videos struck a chord,
values at Pernod Ricard. to the communities in the choice for the brand given its history: the Chivas and in real time. We are very proud to have helped uncover cocktails inspired by the four defining eras notching over 17 million views on YouTube!
The Group established markets where the Group brothers achieved success through their blended the potential of these five talented, ambitious entrepreneurs in the brands history, from the early years Appearances from well-known actors such
whiskies, and went on to become pillars of their who are all working for the benefit of society, said Richard to the current revival. American bartender as 12 Years a Slave star Chiwetel Ejiofor,
a new code of business does business, by including community in Scotland by funding social and Black, Chivas Brand Director, Chivas Brothers. Masahiro Urushido rose to the challenge to was featured describing great successes
conduct designed to
uphold these values, partners and suppliers in its educational programmes. Chivas Regal continues be crowned the winner. by social entrepreneurs, fuelled the videos
success.
which was released in sustainability initiatives. The to draw on values of leadership, generosity and
brotherhood, which are embodied in Live with
January 2015. The code goal is to support economic and Chivalry, the communication campaign the brand
To learn more:
contains all the rules that https://www.theventure.com
employees must know
social progress by encouraging has run since 2008.
and follow in eight key artistic creativity, innovation

areas, including anti- and entrepreneurship spirit.
bribery, competition and
conflicts of interest. The
- Group -
procurement code of
ACTING AS A PARTNER
SUPPORTING THE CENTRE
ethics was also updated
to align practices as Pernod Ricard contributes to local vitality every- POMPIDOUS EMBRACE OF
where it operates. The Groups guiding principles
part of this approach,
for action are open lines of communication with
DIGITAL TECHNOLOGY
as were the CSR clauses Embrace the Chivas Spirit! A new blend
in the general terms stakeholders, respect for and sharing of different Pernod Ricard has demonstrated its commitment
and in the purchasing cultures, and support for development via access to to culture and creativity for 40 years, and has been Chivas Brothers 1,600 employees In October 2014 Chivas Regal launched
agreements, which now education and healthcare. The Group and its em- a main sponsor of the Centre Pompidou since are going digital. In late 2014, the Chivas Regal Extra, an exceptional whisky
contain environmental ployees back projects that bear the hallmarks of en- 1997. With support from the Group, the Centre in- Brand Company invested in digital positioned between the 12 year old and the
and societal commitment trepreneurship. This years flagship projects include troduced an app to replace its audio guides in May communication tools aimed at boosting 18 year old in its Premium range. Produced
collective performance. The company from the rarest malts, Chivas Regal Extra
related to responsible Filire Epices de Kerala, a project for the supply 2015. The museum has also developed a virtual tour equipped its employees with tablets, Chivas first new product since 2007
drinking. of spices set up in collaboration with the NGO of the newly reorganised permanent collection. installed Wi-Fi on all sites and created offers a brilliant new take on the hallmarks
PlaNet Finance (now Positive Planet) that won a Entitled Chefs-doeuvre? (Masterpieces?), the tour a new online hub called Chivas Spirit. of a brand that is an expert in the art of
prize for innovation at the Microentrepreneurship challenges visitors to reconsider their definition of a blended whisky.
Awards in December 2014. Some 100 local farmers masterpiece through a selection of 40 works chosen
now have a permanent path to market at equitable in honour of Pernod Ricards 40th anniversary.
prices, and a vetiver plantation has enabled a group a CSR risk mapping tool. An increase was recorded
of women to develop a business selling handmade here as well: the number of suppliers analysed more
braided baskets. than doubled, from 900 to 1,825. And 324 suppliers
- Havana Club International -
30% more than in 2013/2014 went through a CSR PROMOTING THE SPREAD
ENCOURAGING SUPPLIERS assessment via the EcoVadis platform, helping them to
TO TAKE ACTION develop targeted action plans. Finally, CSR audits
OF CULTURE
The affiliates play an active role in Group sustainable were conducted among an initial panel of 36 suppliers, With its Havana Cultura program, Havana
procurement process. Six hundred and twenty-nine using the SMETA standards (Sedex Members Ethical Club International promotes Cuban art in all its
suppliers have signed the Supplier CSR Commit- Trade Audit). forms, especially music. The latest collaboration
ment up from 370 the previous year which is is a new music album entitled Havana Club
now available in seven languages. In addition, the Cultura Mix, the Soundclash, made with
suppliers potential CSR risks are measured using renowned DJ Gilles Peterson.

Four essentials to see bigger Route to market/Consumer
The definition Route to market/Consumer 04 Joint interview

given by Conor McQuaid
T
he emergence of new distribution channels such as Home-Trade and e-Commerce is
shaking up existing models and posing new challenges. Simon van Moppes, Global On-
Trade Development Director, Global Business Development, and Niall Gately, Trade
Marketing Director, Pernod Ricard South Africa, are working together to place the right brand
in the right outlet with the right activation. Heres how.
be applied to four million On-Trade outlets
Route to market/
worldwide to ensure our brands are present,
visible and activated in order to best reach
the relevant consumer. As Niall points out,
similar segmentation can be applied to Off-
Trade as well as to Travel, e-Commerce and
HomeTrade channels.
Consumer
N.G.: The global team came to South Af-
rica for three days of workshops to help us
adapt the software to our market. We creat-
ed and piloted the sample sales force ques-
Simon van Moppes Niall Gately tionnaire, adjusted it during the pilot phase,
Global On-Trade Development Director, Trade Marketing Director, then rolled it out nationally. The mapping
Global Business Development Pernod Ricard South Africa
was an intensive six-month process of train-
ing, monitoring and follow-up thats already
delivering tangible results.
WHAT DO YOU MEAN BY ROUTE

TO MARKET/CONSUMER?
Simon van Moppes: Its how our Key figures
products reach the end consumer, whether
85
in a retail shop, a bar, a restaurant or through
e-Commerce. RTM/C leverages the excel-
lent Pernod Ricard distribution network, Market Companies
focusing the entire organisation on influ- worldwide
encing consumer choice and behaviour,
especially at the moment of the final pur-
chase decision, what we refer to as the last
three feet. Some surveys indicate that up
4 million
On-Trade outlets
We aim to further leverage to two thirds of consumers are still unsure worldwide
the growth potential of our own what they will buy as they approach a bar or
shop counter.
network and our well-balanced Niall Gately: In South Africa, we built
geographic presence, embracing all our RTM/C strategy by segmenting our HOW DOES RTM/C CHANGE
On-Trade accounts (hotels, bars and res- THE WAY YOU OPERATE?
relevant channels across all markets taurants) using our in-house software and S.v.M.: RTM/C covers the entire con-
to reach our consumers. then aligning it with our own local map- sumer journey. Being consumer-centric
ping of consumer types and consumption also means focusing on customers, influ-
occasions. Our marketing and commer- encing them to stock our brands and en-
cial activities now share a single consum- suring that wholesalers, which are an ex-
Conor McQuaid
er-centric approach right through to the tension of our sales force, are in step with
Global Business Development Director famous last three feet. We are taking a
similar approach to the Off-Trade (food, Were ensuring our our strategy. The software has enabled us to
work within a common framework through-
wine and spirits retailers), which until re-
cently has received less attention in terms
teams around the world out the Group. By focusing everyone on the
same priorities and goals, its increasing our
of segmentation. have the resources they speed, agility and efficiency, which is vital in
our fast-changing markets.
HOW ARE YOU IMPLEMENTING need as they build their N.G.: Were seeing a real change in terms
RTM/C?
S.v.M.: Were ensuring our teams around RTM/C strategies. of mindset within the company all the
teams have homed in on the retailers where
the world have the resources they need as we need to activate brands, where it makes
they build their RTM/C strategies. We work sense to invest because we can achieve a
To learn more with them on implementing a best practice better return. Teams are now required to de-
https://youtu.be/1rw4snm6EDY model featuring the Group segmentation velop a strategy for each of the five distribu-
tool, and adapting it to the specific charac- tion channels: On-Trade, Off-Trade, Travel
teristics of their markets. Our software can Retail, e-Commerce and Home-Trade.
48 49
The picture
Midleton Distillery, Irish Distillers
Derrick ODonovan Brd McAuliffe

Production Quality Department
51
Portfolio Li Wei
Midleton, Ireland
Andrew Walsh John Campion

Production Production

Around the world - Pernod Ricard Colombia -

HIGHLIGHTS
HOME-TRADE:
VENTAS DIRECTAS
0.3M
Route to market/
In Colombia, a new Home-Trade channel cases sold
hometainment which involves enjoying
+9%
spirits at home, is engaging consumers, gen-
erating direct sales, and building a network
Consumer
of brand advocates. These specially-selected
advocates recommend Pernod Ricard prod-
ucts to their friends, families and colleagues by value
at home parties and tastings. The events
+18%
provide new opportunities for trying out new
product and campaign ideas.
Discover the issue of ENTREPRENDRE

about hometainment:
PERRIER-JOUT volume in Japan
http://entreprendre.pernod-ricard.com/
en/hometainment
FOCUS
- Pernod Ricard USA -
THE GUARDIANS Creative unveiling Bubbling innovation
IN THE SPOTLIGHTS
Ephemer, an installation commissioned Perrier-Jout launched a special offer to
from Viennese art studio MischerTraxler, coincide with Valentines Day 2015 that
In a market where the growth of single malts
relies heavily on word-of-mouth, Pernod
TRAVEL RETAIL: was unveiled at Design Miami 2014. featured a bottle of champagne and two
Perrier-Jout is the official Champagne of flutes in a Blason Ros gift box. Targeted
Ricard USA has been developing a strong FLYING HIGH IN BRAZIL the event. Three of the artworks elements to Off-Trade channels such as department
relationship with its key target through the a bee, a butterfly and a dragonfly were stores and e-Commerce, the offer came with
adapted for use in three limited-edition an innovative surprise: a laser engraving of
Guardians, The Glenlivet global community offerings throughout 2015. the MischerTraxler artwork inside the flutes.
platform. This loyal fan base helped create When a glass is poured, the engraving spurs
the brands next limited-edition product, the formation of bubbles, extending the
The Glenlivet Guardians Chapter, through Champagnes sparkle.
a unique interactive campaign that was
used to collect consumer data and direct
product distribution toward outlets close to
consumers residences. The Guardians also
were offered an opportunity to buy the prod-
uct one month ahead of launch through an
online retail partner a true Route to market
innovation!
- Pernod Ricard Italia -
EFFICIENCY IS THE
WATCHWORD Belle Epoque lights up the night Belle Epoque Millsime 2007
A shift from use of third-party sales

Introduced this year, the luminous A mild winter and warm spring
agents to an in-house sales force
Belle Epoque bottle exudes elegance. helped produce this beautifully
Travellers zooming through completely focused on its targets is A luminescent arabesque of an anemone balanced crystalline blend,
8,000
- Pernod Ricard Winemakers - So Paulos busy Guarulhos improving Route to market efficiency in bloom and a bud on the verge of opening best described as hedonistic.
International Airport in spring 2015 and raising the profile of Pernod become visible when the bottle is
NEW CRM SOLUTION were invited to learn more about Ricard brands and activations in placed in darkness.
PROMOTES A TAILORED Perrier-Jout at the brands pop-up
consumer interactions Italy. In addition to upgrading and
shop. The Travel Retail activation redeploying the sales organisation,
APPROACH TO provided an ideal environment to
1,400
the initiative meant that the company
CUSTOMERS showcase the prestige Champagne
brand with an international
no longer required the services of
audience. Consumers were invited 55 external sales agents. Implemented
The introduction of new, world-class, to register via iPad to be eligible for in July 2015, the move improves
CRM software is enabling Pernod Ricard exclusive gifts such as Champagne iPad registrations responsiveness to brand priorities,
Winemakers, to capture consumer flutes and to pose in the stores extends sales coverage, streamlines
1,800
data seamlessly and personalise their photo booth. Individually packaged processes and increases management
experience. In partnership with BIS, flutes also were offered to those efficiency, all for a lower cost.
the marketing team have been able to purchasing a bottle. The five-week
increase the number of consumers in the activation produced more than
8,000 consumer interactions photo booth portraits
Jacobs Creek database by 35% over a
and boosted visibility in Brazils
four-month period, and achieve record
growing Champagne market.
engagement rates.

HIGHLIGHTS - Pernod Ricard USA - - Pernod Ricard Australia -

HIGHLIGHTS
HOME A COCKTAIL
1.5M cases sold

SWEET HOME
In the US, Pernod Ricard teams have
BAR ON WHEELS
Its now possible to serve Premium cocktails
3.4M cases sold
developed a comprehensive solution at music festivals thanks to Cocktails on Tap,
+2%
for offering consumers products as
-3%
a turnkey mobile cocktail bar solution devel-
well as a range of services to enhance oped for the On-Trade market. The resource
the home entertainment experience. offers a great way to compete with beer and
The initiative taps into the cider at outdoor events.
by value fast-growing trend of direct by value
home sales to consumers. To learn more:
+2% +2%
https://www.youtube.com/
watch?v=BGBc6WmyKuk
KAHLA volume in the US MALIBU volume in the UK
Kahla offer its take on the White Russian White Russian Bottling the best summer ever Get on board the Malibus
Co-Promotion
Kahla has joined forces with Academy Building on last years success, Malibu The brands midsummer campaign in
Award-winning actor Jeff Bridges to release Kahla records sales growth launched its 2015 Best Summer Ever South Africa reached nearly half a million
"The White Russian," a Kahla Productions in the UK and Canada thanks a digitally focused global campaign. consumers. A refurbished 1976 Volkswagen
short film honoring the classic cocktail. to co-promotion campaigns featuring In connection with the launch, a limited Malibus was the centrepiece of a
Bridges, who narrates and stars in the short White Russian displays with edition campaign themed bottle was #Bestsummerever social media activation,
film, recounts an adventure-filled story with Kahla and Absolut vodka. introduced across Europe, bringing the launched during Plett Rage, the countrys
twists and turns for the characters, while campaign to life at the point of purchase. longest-running and largest student festival.
sipping on a classic White Russian cocktail.
To learn more:
https://www.youtube.com/ - Pernod Ricard India -
watch?v=AhIm2URPhwE
MAPPING
A WIN
In India, the implementation of a new
geographic expansion model propelled
- Pernod Ricard UK - Imperial Blue whisky into a leadership
E-COMMERCE: position in the market. The model was
used to focus on the most important
UNDERSTANDING opportunities to expand geographic
ONLINE SHOPPERS coverage and improve distribution,
helping to drive a more than eight-fold
To increase online sales, Pernod Ricard UK increase in market share.
A limited edition White Russian lionized
to enjoy in the sun is gaining new insights into how consumers Summer hit National Pia Colada Day
shop online with major retailers through a
Kahlas short film White Russian research project with MySupermarket.com.
The brand has released the limited- was recognised with two Cannes Lion awards A partnership with American YouTube A poster, digital and e-mail campaign,
edition Kahla Salted Caramel, a for its direction and script at the Cannes The website, used by savvy shoppers to get - Pernod Ricard Espaa - phenomenon Redfoo helped to make Malibu supported by point-of-sale materials at
combination of savoury and sweet Lions International Festival of Creativity, the best discounts, has access to a signifi- the summers most talked-about spirit brand. partner bars in the UK, helped fuel the 10July
flavours to be enjoyed in spring or the worlds biggest celebration cant amount of data, including consumer CATEGORY The collaboration featured a mention of celebration of the iconic cocktail.
summer as a frozen or iced cocktail. of creativity in communications. Malibu in the performers summer hit, product The campaign won Malibu a social buzz award
profiles, shopping cart contents, product MANAGEMENT placement in the tracks video and online nomination as well as increased On-Trade
information, ratings and reviews and search activations. and online visibility.
habits. The results will enable better under- SYSTEM
standing of online shopping behaviours.
The data also will be used to develop strat- A new system and new innovative tools
egies to influence the path to purchase and (monthly newsletter for the retailers,
partnering decisions. monthly report store) have helped im-
prove performance at Off-Trade outlets
and On-Trade venues in Spain. The initi-
ative included product shelf repositioning
and eye-tracking research to determine how
to best appeal to consumers with enhanced
product visibility.

Infographic
Place the right 01 On-Trade 02 Off-Trade 03
Travel
product in Retail
the right place HOTELS, BARS & RESTAURANTS LARGE RETAILERS AIRPORTS, AIRLINES, FERRY BOATS
AND NIGHTCLUBS AND SPECIALIST STORES AND CRUISE LINERS
Pernod Ricards organisation, unique in its

industry, is built around six Brand Companies -
and 85 Market Companies. Wholly-owned by -
One of the Groups traditional strengths, this -
Off-Trade continues to outpace On-Trade with
the Group, the distribution network ensures distribution channel is still one of the most
an estimated 72% share of sales volumes in
This is one of Pernod Ricards most strategic
a presence that is closer to markets and important in growing brands globally and channels. Travel Retail spending is expected
2014 versus 28% for On-Trade.
driving demand. To effectively target and to double over the next 15 years,
consumer needs, allowing the global strategy activate brands in such venues, Pernod Ricards
This breakdown reflects higher home
with a rise in passenger numbers
defined by Brand Companies to be tailored consumption rates driven by modern outlets
teams have segmented key locations for each from 4 to 7 billion.
and the sluggish economic climate.
to local realities. This overview explores the market worldwide.
-
-
five distribution channels the Group needs to -
conquer to secure its leadership.
Olivier Rouche
Off-Trade Development Director,
Global Business Development
Route to market/Consumer
(RTM/C)
Releasing the potential 04 E-Commerce 05 Home-Trade
of our brand portfolio
IN 30 SECONDS
To implement our consumer-centric strategy, we need to NEW SERVICES FOR
place one of our brands at each consumption moment and to 01 ONLINE DISTRIBUTION
HOME CONSUMPTION
engage consumers, which means focusing on five distribution The presence, visibility
channels. The first channel, On-Trade, is the one that and the activation of the Groups
historically enabled the Group to build brand awareness and complete brand portfolio is based -
drive demand. We leverage this channel to engage potential on five distribution channels. - New social trends and technological advances
consumers to choose one of our brands when ordering a Digital has broadly impacted global consumer are steadily transforming the way we socialise.
drink in a hotel, bar, restaurant or nightclub, for example. 02 habits. As a result, this is now a major distribution Consumers are increasingly likely to arrange
The second channel, Off-Trade, applies to large retail outlets, The RTM/C is constantly evolving, channel for the Group, which has decided to focus consumption experiences at home, where they
specialist stores and traditional outlets. The challenge is requiring regular changes on indirect e-Commerce, i.e. sales through partners try to recreate professional-standard experiences.
to trigger a Pernod Ricard purchase on shelves where our to the organisation and deployment (Amazon, our large retailers clients that sell our This is an opportunity for the Group to provide
brands are displayed beside competitor brands. This is what of country sales forces. brands online, etc.). Learn more on page 81. consumers with turnkey solutions and services
we at the Group call winning the last three feet. The third - for successful new moments of conviviality.
channel, Travel Retail, covers airport stores, airlines, ferries -
03
and border stores. Travel Retail will become even more
Each country presents specific
important in the years ahead with the projected increase
distribution challenges:
in world traveller numbers. We have also added two new
there are no global
channels: e-Commerce, to win the battle for online sales, and
one-size-fits-all solutions.
Home-Trade parties at home. We intend to take advantage
of this rapidly growing phenomenon to become a leading
home-party brand.

Four essentials to see bigger Four accelerators to see things faster Chapter
Operational
Excellence
Talents CSR
Route to market/
Consumer
Portfolio
management
Digital
acceleration
Innovation Premiumisation
& Luxury
3
F O U R
A C C E L E R A T O R S
TO SEE THINGS
FAST E R 58 59
Four accelerators to see things faster Portfolio management
The definition Portfolio management 01 Joint interview

given by Conor McQuaid
A
ctive, dynamic portfolio management demands that we learn more about
consumers, their needs and the occasions when they enjoy our products. That
information is invaluable to the teams responsible for optimising the Pernod Ricard
brand portfolio. Joint interview with Janelle Tong, Strategy Director, Pernod Ricard Asia;
Paco Recuero, Marketing Director at Pernod Ricard Espaa; and Maxime Kouchnir, VP Marketing
CORBY (Canada).
Portfolio
management Janelle Tong
Strategy Director Pernod Ricard Asia
WHAT IS THE OBJECTIVE OF

Paco Recuero
Marketing Director Pernod Ricard Espaa
Maxime Kouchnir
VP Marketing Corby (Canada)
Maxime Kouchnir: Like Spain, Canada

PORTFOLIO MANAGEMENT? was one of the pilot countries for the Groups
Janelle Tong: Portfolio management portfolio management plan. Its helping us
enhances our perspective: it helps improve maximise the value of our business in a ma-
allocation of resources and optimises mar- ture market, based on existing brands and
keting activity and brand strategy decisions also innovate to create new assets. In imple-
by providing an overall picture of the market menting the plan, we built on the work that
position of each brand in our portfolio. Given we had done to prioritise our long portfolio
the depth of the Pernod Ricard portfolio, port- of brands, which includes some significant
folio management is undoubtedly our most local brands as well as a strong wine business.
powerful business accelerator. The core of the Its an effective way to communicate brand
approach is a laser focus on the consumers prioritisation throughout the organisation,
and the moments of convivialit when they to differentiate our must-win brands from
share and enjoy. Portfolio management in- our maintenance brands. Portfolio manage-
volves clearly identifying and seizing these key ment provides us with a clear understanding
moments of convivialit in each market based of what it takes to win.
Pernod Ricard has the industrys on an analysis of consumers and their needs.
most comprehensive portfolio This is used to produce a market-specific con- CAN YOU GIVE SOME SPECIFIC
sumer demand map in each country, designed EXAMPLES?
of international Premium brands. in a consistent manner but tailored to local P.R.: Weve become much more agile and
Our objective is to place one of our brands specifics. While the moments of convivialit quick in our ability to respond to whats hap-
can vary by market, we see four primary mo- pening in our market. When we saw that a
at every gathering, every celebration, ments at a global level: Get together; Night competitor was starting to gain volume in the
and every shared occasion, making it out; Premium socialising and savouring; mature segment for whisky, which is a huge
and Aperitif and meal occasion (see page 70). market in Spain, we reallocated investment
a true moment of convivialit. We use the map to position our top 19 priority for Ballantines to reinforce the brands posi-
brands around specific moments of convivi- tioning with older consumers. Its now very
alit, defining a clear role for each in order to Portfolio easy to move from one outlet to another with
Conor McQuaid develop a true portfolio approach.
Paco Recuero: In Spain, we implement-
management provides the right kinds of activation for the appropri-
ate consumer segments.
Global Business Development Director
ed the Groups portfolio management ap- us with a clear M.K.: We used to be very brand-centric
proach, which helped us target our markets and think in terms of categories, but thats
accurately, optimise resources, set clear pri- understanding of what not how consumers usually operate. Mov-
orities and track performance. We began by
using it to challenge current strategies and it takes to win. ing to an approach focused on moments of
convivialit enables us to focus on occasions
plans and to set clear priorities for and with- when several brands may be relevant for
in brand categories. We found that we could consumers. For example, in Canada, when
invest more efficiently, reallocating resources we emerge from the long winter to the short
to the markets that offer the biggest opportu- summer what we call the patio season
To learn more
nities. It truly helped us to adapt our strate- everyone is looking for light drinks and
https://youtu.be/zaMg8zk0bv8 gies to our targets and accelerate our progress theres a lot of beer consumption. Based on
towards becoming a fully consumer-centric our understanding of consumer needs, we
organisation. approached this moment of convivialit with
60 61
Joint interview
two different brands: Jacobs Creek Muscato, phase of deployment have been going further
a very fresh, easy-to-drink, modern take on in refining the programme and conducting
Key figures wine, as well as Malibu and Malibu cocktails, truly extensive analyses of specific brands
both individually and in pitchers. In addition and segments.
4
to leveraging our rich portfolio of brands, M.K.: Portfolio management is more
we also can innovate to cover opportunities than just a marketing mechanism; it is also
weve identified such as JP Wisers Hopped, a very strong organisational tool. Thanks to
moments of convivialit:
Get together, Night out, a Canadian whisky infused with hops that it, we have made major progress in linking
Premium socialising and savouring, brings whisky and beer together. This is one our strategy to execution, which flows now
Aperitif and meal occasion way for us to tap into the craft beer trend
which is huge in North America.
14
strategic Premium spirit
WHAT PROCESS HAVE YOU
FOLLOWED IN IMPLEMENTING
and Champagne brands

PORTFOLIO MANAGEMENT?
J.T.: We began with an in-depth pilot Portfolio
5
priority wine brands:
project in a number of countries, includ-
ing, as Maxime and Paco have indicated,
Canada and Spain. In India, another of the
management is more
than just a marketing
Jacobs Creek,
pilot countries, the teams surveyed 28,000
Brancott Estate,
Campo Viejo, consumers and had to manage considerable mechanism; it is
Graffigna and Kenwood

complexity. As we progressed in each of the
pilot countries, we made adjustments based
also a very strong
18
key local brands
on experience and feedback to further re-
fine our methodology. We also developed a
toolkit to enable smaller countries to apply
organisational tool.
the same approach in a cost-effective man-
ner. The pilot countries and those in the first
very directly from brand marketing plans into a best practice and we have shared our ex- the On-Trade(1) segment and then extending
sales objectives. In Canada, weve rolled out a perience with our colleagues at regional and it to Off-Trade. Were also enhancing our
sales and management planning tool against global meetings. demand map by adding more information
which sales performance is measured. Com- sources such as competitive intelligence and
bined with portfolio management, this pro- WHAT ARE THE NEXT STEPS? additional layers of data regarding consump-
vides a lot of clarity; our sales force under- J.T.: In many markets, we already are tion occasions.
stands what they need to deliver in terms of seeing the benefits of a more holistic fo-
(1) On-Trade sales are to hotels, bars, clubs and restaurants;
distribution, activation and pricing. We see cus on consumer needs and consumption Off-Trade sales are to retail outlets.
this tool as a great means of converting strat- moments through improved alignment and
egy into execution. Any of our sales people efficiency. Were doing a better job of allo- Weve moved from
can now walk into any account in Canada cating resources to the most promising op-
and view the same prioritisation model and portunities, improving understanding of the practices that were
objectives for each individual brand. It unites
everyone nationwide around common pri-
most effective activations and more clearly
identifying gaps not met by our current largely based on
orities. Its where we really start seeing the
best results.
portfolio to which we can respond through
innovation or acquisitions.
intuition to a much
P.R.: Pernod Ricards portfolio manage- M.K.: Weve moved from practices that more fact-based,
ment programme has helped us improve were largely based on intuition to a much
our performance and increase our market more fact-based, rational approach. Were rational approach.
share, in particular in gin, whisky and rum. working now to see how we can build even
The demand map has also become a crit- stronger plans, aggregating knowledge to
ical tool for us for new product launches, become even more effective, pushing for a
enabling us to identify gaps to ensure that much deeper understanding of the playing
were responding to the needs of a variety of field on which were competing, relentlessly
target markets based on the occasions when addressing market gaps and translating our
they consume our products. Our entire national priorities to the store level.
organisation is now fully aligned with the P.R.: The portfolio management ap-
programme, which has become a common proach has improved our ability to allocate
language shared throughout the company. resources for optimal brand support. Were
Our implementation has been identified as now working on applying this experience to

The picture
Moulin de Verzenay, Martell-Mumm-Perrier-Jout
Galle Taingland Estelle Prieur Lydia Lavergne

Production Viticulture & Enology Production & Manufacturing
65
Portfolio Li Wei
Verzenay, France
Carole Marchal Tony Saunier

Production & Manufacturing Production & Manufacturing

Around the world - Pernod Ricard Brazil -

FOCUS
ABSOLUT INTRODUCES
THE VODCALIZE
CAMPAIGN
THE WORLDS #1 SINGLE MALT
Portfolio
To solidify its position as the leading
Premium vodka brand in Brazil, SCOTCH WHISKY
Absolut developed a promotional
concept, Vodcalize, drawing on
management
its vodka portfolio and engaging - Pernod Ricard Mexico -
consumers with a strong call to action.
Through a series of promotions, HOUSE OF TEQUILA:
partnerships and activations across THE ULTRA PREMIUM
every sales channel, the brand
successfully expanded its portfolio at SEGMENT IN THE
retail outlets and converted the basis of SPOTLIGHT
buying decisions from price to a focus
on the consumption moment. Did you know that tequila has been the
fastest-growing white spirit over the last
10 years? Some 25 million cases are sold
throughout the world each year. This led The Glenlivet is now the worlds biggest distillery, increasing capacity to meet future
Pernod Ricard to unite its tequila brands single malt Scotch whisky brand by volume, demand and maintain the same high
FOCUS Olmeca, Altos and Avin under one selling more than one million cases in 2014, level of standards for which our whiskies
- Pernod S.A. - Brand Company management entity called according to the International Wine & Spirit are renowned.
BALLANTINES: House of Tequila. With this renewed or- Research (IWSR 2014).
ganisation, Pernod Ricard is ready to con-
PORTFOLIO quer the Premium and Ultra Premium
A pioneer since the beginning To learn more:
As the first licensed distillery in the Livet http://uk.theglenlivet.com/
MANAGEMENT THAT tequila markets across the world. valley in 1824, the brand continues to
DRIVES SUCCESS demonstrate its pioneering spirit through
55M No.1 120

a host of innovative new products: The
#1
To learn more: Glenlivet Founders Reserve, The Glenlivet
In a stagnant whisky market, Ballantine's http://tequilaavion.com/
Master Distillers Reserve range and The
posted a record performance for the year in Glenlivet Winchester Collection. The brand
France, thanks to effective portfolio manage- liters sold Scotch whisky in trophies and medals also boasts a passionate fan base (part of its
ment: Finest targets consumers familiar with annually Europe awarded at international To learn more:
http://www.olmecatequila.com/
successful CRM programme), known as The brand of single malt
the brand while Brasil addresses new ones. competitions Guardians of the Glenlivet. Scotch whisky
The double-digit growth of 10.7% contrast-
1M
ed with a 0.7% uptick in the whisky category The Glenlivet has been the largest
To learn more:
overall and helped drive a 0.7 point gain in http://www.altostequila.com/ contributor to growth in the single malt
market share, to 10.4%. Ballantines was the SCOTCH AND SAMBA category over the past five years (IWSR
2014), and last year broke the threshold of
second largest contributor to whiskys growth
in France and the worlds leading market for
one million cases sold. The past five years cases sold in 2014
The new offering responds to the significant have been phenomenal for The Glenlivet, says
Scotch whisky. - Pernod Ricard Winemakers -
191
opportunity for spirit drinks made with CEO and Chairman of Chivas Brothers
whisky, a dynamic new category that has TARGETING Laurent Lacassagne. The brand has seen
been demonstrating a strong rate of growth. consistent sales growth, by volume and especially
Ballantines Brasil represents a venture into THE WINE NEEDS by value. As we look to the future, we will continue
new territory for the brand, inspiring a new
generation of consumers to enjoy a Scotch
OF CONSUMERS to broaden The Glenlivet product range and get years of craftsmanship
customers more involved with the brand. Well
whisky drink. To adapt to trends in its various also pursue further investment in The Glenlivet
markets, Pernod Ricard Winemakers
In the mix
is deploying a brand strategy based
Since the launch of Ballantines Brasil in key
markets around the world, consumers have on moments of convivialit. In the
been discovering new cocktail favourites on canadian market, for example, Campo
www.mixitwithbrasil.com, such as the delicious Viejo was introduced in response to - Pernod Ricard Thailand -
signature serve, the Highland Samba, which a stated desire among consumers OPTIMISING
mixes Ballantines Brasil and lemonade, served for sophistication that blends wine
over ice and topped with two freshly cut tastings and cultural exploration, ON-TRADE
Infusing Scotch whisky with Brazilian lime slices of lime. Other inventive creations have
seen Ballantines Brasil combined with apple
especially when celebrating festive INVESTMENT
peel, Ballantines Brasil is an innovative fusion occasions with good friends. In China,
juice (Glen Rio), freshly squeezed lime and
of the traditions of Scotland with the passion the brand portfolio management Application of the Groups portfolio man-
of Brazil. The latest addition to the brands elderflower (Flower OBrasil) and freshly
strategy has been extremely helpful agement methodology in Thailand enabled
portfolio features a delicate combination squeezed lime, crushed sugar and a touch of
coconut (Glen Coco). in targeting specific needs to match On-Trade investment to be re-targeted to
of stimulating citrus complemented with a
special occasions. For example, meal more profitable and higher image outlets.
smooth touch of vanilla to deliver a smooth and
occasions are increasingly linked with This tool was implemented at all of the
consistent taste, with the sweet and creamy
flavours of Scotch perfectly balancing the sharing wine experiences with countrys more than 2,100 potential outlets,
refreshing lime. friends and family. categorising them by type and image. The drive increases in ROI and the percentage of
resulting optimisation of investment helped outlets graded Premium or above.

HIGHLIGHTS - Avin - HIGHLIGHTS

ULTRA-PREMIUM
6.2M 1.1M
TEQUILA MAKING
ITS MARK
cases sold After becoming majority shareholder of Avin cases sold
in July 2014, Pernod Ricard is moving to capital-
+3% +11%
ise on the ultra-Premium tequila brands highly
promising growth potential. Avin is one of the
worlds fastest-growing ultra-Premium tequila,
by value offering consumers raw materials of exceptional announced in March, paves the way for in value
quality the best Blue Weber agave plants com- Premium, Super Premium and Ultra-Premium
ing from the Jalisco region at the west of Mex- tequilas to be offered worldwide. Were on our
+8% +30%
ico as well as a unique know-how. Grown by way to making Avin an iconic brand, says Ken
the same family for five generations, Avin has Austin, founder of the brand. Im proud of what
been voted the Worlds Best Tasting Tequila in weve achieved so far, especially the awards for
BALLANTINES volume in France 2012 at the San Francisco Spirits Competition. Best Tequila and Best Unaged White Spirit at THE GLENLIVET volume in Taiwan
The brands launch outside North America, the San Francisco World Spirits Competition.
HIGHLIGHTS
An out-of-this-world collaboration Become a Master Blender Original appeal Unique tribute to The Glenlivets
in transit unrivalled heritage
A collaboration with globally renowned artist
PERNOD RICARD The tagline for The Glenlivets new
INSA produced the worlds largest animated The innovative, interactive Blending ASIA global communications campaign, The Glenlivet Founders Reserve has been
GIF, captured via satellite and transformed Experience installation, available to travellers It All Comes Back To The Original, created as the ultimate tribute to founder
into a moving piece of GIF-ITI. in airports around the world, offers celebrates the brands origins of being George Smiths original vision to craft
+4%
Scan this code to watch the video: the opportunity to play Master Blender the original single malt setting standards the most definitive, smooth single malt
and gain a better understanding of the refined Adopting the new portfolio strategy in style quality and taste since 1824. Scotch whisky. With Founders Reserve,
To learn more: skills involved in the process. Through television, print and online The Glenlivets perfectly-balanced and
https://www.youtube.com/ ads, the campaign is designed to attract fruity house style is skilfully complemented
watch?v=yXtSnq-Nvro. sales in the region Following a pilot phase in Thailand and discerning malt consumers. with a creaminess and sweetness from the
India, Pernod Ricards portfolio management addition of First Fill American oak casks.
+18%
methodology was rolled out in South Korea,
China, Hong Kong and Singapore.
in India Preparing tomorrows leaders

now the third market for the Group
The Asia Regional Management Trainee
-2%
Programme is a unique, 18-month
programme designed to develop leadership
skills among talented young employees and
prepare Pernod Ricards next generation of top
in China managers. The training, which encompasses
(vs. -23% in 2013/2014) a wide variety of positions and countries,
Worlds first digital magazine Documenting local focuses on the Groups expectations and the
devoted to whisky music cultures values that underpin its culture.
Ballantines W Instazine is the worlds first An international partnership with the online An app for the sales force Targeting sales excellence A designer chair
digital whisky magazine hosted exclusively music platform Boiler Room has helped
on the social media platform Instagram, the brand connect with more than nine
and is designed to appeal to modern whisky million music fans through web-based The Promoter App was developed for in- A Commercial Excellence electronic toolkit For relaxing and enjoying a dram of whisky,
drinkers, design and tech enthusiasts, documentaries celebrating the worlds most house sales personnel, who use it to keep that combines portfolio management, The Glenlivet collaborated with award-
and fans of pop culture. You can view the vibrant music scenes. up to date on the latest retail developments, marketing agreements and best practices is winning British designer Gareth Neal to
magazine here. gather consumer feedback and optimise being used by the local affiliates to align produce The Glenlivet Ndurra Dram Chair.
advertising and promotional investment in their sales forces and allocate resources The Glenlivet extends the Master
This handcrafted oak chair, inspired by the
events conducted at outlets. to key priorities. Distillers reserve journey
connoisseurial whisky, imaginatively captures
To learn more: the spirit of Ndurra (meaning natural in
To learn more:
https://instagram.com/ballantines_ Gaelic) in both function and form. Available exclusively to international
http://boilerroom.tv/staytrue/
official/. travelers from 1st July 2015, the Masters
Distillers Reserve range is a signature
collection of three exceptional triple-cask
- Pernod Ricard Colombia - linked to consumer events as well as online matured single malt whiskies. It elegantly
ordering, captures and segments consumer showcases the unrivalled quality and
WELCOME TO YOUR data to be used for consumer engagement and character that has become part of the
signature of The Glenlivets classic style
BARMANCLUB media strategies. This targeted approach ex-
the single malt that started it all.
pects to drive increased sales through higher
Pernod Ricards Colombian teams have cre- content relevance with the key target.
ated a portfolio-wide web-based platform,
BarmanClub.co, in an effort to drive the digital
consumer journey around industry and prod- To learn more:
uct related content. The site, which features http://www.barmanclub.co
engaging and interactive multi-brand content

Infographic
Aperitif Premium
The 4 experiences and meal
Soire chic
occasion
Get
together
Soire chic
socialising
andchic
Soire
Night
Outchic
Soire
of convivialit
Soire chic Soire chic Soire chic
savouring Soire chic
This moment is all about coming This is a moment spent with friends, Consumers meet up with friends Consumers go out at night
together, toasting the meal and in a relaxed atmosphere. It usually or colleagues for a social gathering with friends, looking for fun.
savouring wine or, in some countries, doesnt happen late at night. in a sophisticated venue, to Theyre lively and full of energy.
Yves Schladenhaufen spirits with your food. Whether its Friends share their thoughts as well as savour superb drinks. Music is important for having
Innovation & Portfolio Strategy Director, indoors or outdoors, enjoying an aperitif their drinks: its a moment to connect Top quality, sophistication and a good time, as are the people
Global Business Development and a drink with your meal is a special and share in a spirit of honesty, excellent service are essential. theyll see or meet.
moment anywhere in the world. truth and genuine interest.
Our new portfolio

approach: the moments
of convivialit
Our objective is to offer the right drink to the right
people at the right time. The consumer has changed: hes
no longer faithful to a specific brand but rather to a repertoire of
brands that he selects depending on the occasion.
Thats why we chose to structure our portfolio by

moments of convivialit rather than by category:
this approach is completely consumer-centric. Moments of
convivialit are defined for each market depending on the local
lifestyles and culture. Nevertheless, we noticed four common
features worldwide four primary moments of convivialit. Weve
called them: Night out, Get together, Premium socialising and
savouring, Aperitif and meal occasion (see diagram).
FOCUS ON WHISKY
At Pernod Ricard, we have

a wide range of whiskies.
Thanks to our new approach, situations and get-togethers
we can determine a role among friends. The Glenlivet
for each brand, adopting a is savoured by a limited group
broader perspective than of connoisseurs, while Chivas
simply whisky: in some is a drink linked to celebrating
moments of convivialit, a success between gentlemen,
whisky brand may compete in particular with colleagues.
with vodka, cognac, or They are all whiskies, but they
liqueur! have different personalities
For example, Ballantines is and lend themselves to a
enjoyed at night, in clubs, variety of circumstances.
while Jameson is more
often consumed in informal

Four accelerators to see things faster Digital acceleration
The definition Digital acceleration 02 Joint interview

given by Antonia McCahon
D
igital places the consumer at the heart of everything. Jrmie Moritz, Global Digital
Content Creation & Distribution Manager, and Marc Andr, IT & Corp Services
Procurement Director, Information Systems Pernod Ricard Winemakers, offer their
insight on how to approach digital and the conditions for success.
infrastructure (cf.p.76) to enable and train our

people to turn digital into a business accelerator.
We have digital experts, but on top, we are pro-
Digital
moting a digital first culture, where integrating
digital is clearly everyones job.
M.A.: Indeed, digital is not the sole preserve
of IT but something that permeates the whole
business. Our role is to get all employees on
acceleration
board for this adventure, which requires a com-
Jrmie Moritz Marc Andr
bination of education and conviction. At an op-
Global Digital Content Creation IT & Corp Services Procurement Director,
erational level, we are already involved very early
& Distribution Manager Information Systems, Pernod Ricard Winemakers
in the process for in-house projects and we reg-
ularly work with the sales and marketing teams.
WHAT OPPORTUNITIES DOES For example, optimizing our digital content and HOW DOES DIGITAL CONTRIBUTE
DIGITAL OFFER PERNOD RICARD? assets to ensure that we own our fair share TO THE PREMIUMISATION OF
Marc Andr: Digital is at the heart of what of the billions of searches around our category PERNOD RICARD?
we do. It provides a tremendous opportunity for each year on Google. Similar progress is being J.M.: Digital underpins and accelerates the
us to get closer to the market to become fully con- made in-house, boosting our Digital Mindset: for Premiumisation of our products and services.
sumer-centric. One way we are working towards digital to really impact our business, it must be Latest research shows that of luxury purchas-
this goal is by enriching our consumer databases truly mastered and integrated into our day-to- es, even if they still take place in stores, are in-
to improve our understanding and segmentation day activities at all levels. Weve put in place key fluenced by what consumers see, do and hear
of the different communities around our brand online. The key is to use digital and data to target
portfolio. Here in the Information Systems Di-
vision, our role is to implement the right tools
and architecture at the right time using the right
technology, to best support the Pernod Ricard Key figures
strategy and, ultimately, guarantee our success.
WHICH AREAS IS THE GROUP

WORKING ON?
2013 Creation
Digital doesnt begin and end Jrmie Moritz: Pernod Ricard has defined of the digital acceleration team

with IT it transforms our relationship four digital priorities: Smart Data, Everywhere
with consumers and Group employees.

Commerce, Connected Content and Services
and, lastly, Digital Mindset. 80
employees from
It needs to be thought of as a new language The first one, Smart data, allows us to gather
the Groups businesses
data from consumer interactions with web sites
that transcends all parts of the company, or from consumers attending one of our events.
were involved in defining
the digital roadmap
enabling the Group to simplify, hone its focus Thanks to the data collected, we now have real
25%
time insight into consumer behaviour what
and go faster the three fundamentals they like, dislike and their consumption habits.
of the digital acceleration. It also helps us to be relevant in targeting and of advertising
messages when we launch an advertising cam- and promotional
paign. As for e-Commerce, it has become key as activities are purely digital
digital changes consumer behaviors everywhere.
Antonia McCahon
Digital Acceleration Director,
Our core focus is on indirect e-Commerce since Digital allows us
it represents the lions share of on-line sales. consumers more precisely, before bringing them
Global Business Development We have a number of key e-Commerce initia- to go beyond more relevant content and experiences. Digital
tives in place across the critical e-Commerce
markets, each representing differing challenges conventional product allows us to go beyond conventional product
promotion by moving further into the territory
and market contexts.
promotion by moving of convivialit.
M.A.: Digital lets us forge individual and per-
WHAT ABOUT THE TWO OTHER further the territory sonal relationships with our customers, to inter-
AREAS: CONNECTED CONTENT act with them. In all these areas, there remains
To learn more
AND DIGITAL MINDSET? of convivialit. much to do and discover. Our success depends
https://youtu.be/VSHvGv2VfSs J.M.: Connected Content is about being on timely action in other words, our ability to
dominantly visible and relevant where peo- deploy the right technological response at the
ple search, connect and buy our category. right time.
72 73
The picture
Chteau Ricard de Sainte Marthe, Ricard S.A.
Kham-Khao Hoang Stphanie Clause Soria Aouchiche

Production Production IT
75
Portfolio Li Wei
Marseilles, France
Olivier Marcellin Thomas Marquet

Sales Finance

Around the world HIGHLIGHTS
4.9M cases sold
Digital Stable
acceleration
in value
+3%
- Group -
PROMOTING
DIGITAL CULTURE RICARD volume in France
Pernod Ricard has fully joined the digital era
with its Digifit online course, which is open
to all employees and teaches the basics of
- Pernod S.A. - FOCUS digital culture. The entertaining format,
Ricard makes its mark Frozen Ricard:
inspired by Trivial Pursuit, has proved pop-
PERNOD SETS ITS SIGHTS ular with employees so much so that they
on contemporary design a new, ultra-fresh ritual
ON E-COMMERCE challenge each other during battle weeks

The now-famous pair of Ricard carafes Refreshing, generously served and
held every quarter. Its a way of encourag- designed by architects Dominique Jakob affordable, the new Ricard-infused granita
An increasing number of Champagne drinkers BALLOON GLASS OR HIGHBALL? ing learning while gaining new indicators and Brendan Mac Farlane have captured two is a hit with 18 to 25-year-olds, especially
and consumers of other Premium and Super on progress achieved. Meanwhile, a Massive design awards: the Gold Pentaward in French university towns.
Open Online Course (MOOC) has been de- and a special mention at Grand Prix Stratgies
Premium products are turning to e-Com- du Design 2014.
merce sites to purchase goods and services vised to help employees learn the rules of
with high added value. Pernod picked up the Code of Business Conduct. Says Ian
on the trend and the digital, marketing and FitzSimons, General Counsel, While the
sales departments developed a data collec- principles set forth in the code are clear, it is not
tion strategy that has already yielded over always easy to know how to apply them in re-
500,000 contacts and generated 100,000 li- al-life situations. The MOOC delves into each
tres of sales! The average total at check-out of chapter of the code, featuring videos presenting
customers on Barpremium.com and partner potential scenarios.
sites has also shot up in value: its two to three
times higher than the average on the website.
An upscale showcase
Pernod is spearheading its digital strategy with
Barpremium.com, which offers consumers an SPOTLIGHT ON SMART DATA
extensive range of Premium products paired
with tasting kits. The goal is to let custom-
Highly effective targeted ShopR: bringing geolocation DigitalR:
ers enjoy authentic tasting experiences in the to distribution Ricard S.A. digital guide
comfort of their home. Ricard launched a large-scale marketing campaign promotional campaigns have
targeting young adults in the lead-up to summer, more than been developed based on data
250,000
The site is enhancing the consumer experi-
pitting two pastis glasses the balloon glass and collected from visitors to the The ShopR app geolocates every outlet Since January 2015, Ricard employees
ence and customer relationship through its the highball glass against each other in a contest. that stocks Ricard S.A. brand products, have access to the DigitalR guide,
special loyalty programme and Premium po- brand websites. including Lillet, Clan Campbell and Malibu. which provides information on harnessing
Ricards new summer campaign showcases two
sitioning. At the same time, Barpremium.com different ways of serving and enjoying the drink: It offers another significant advantage as social media, managing numerical identity
offers an alternative product showcase that is people reached on Facebook CHIVAS IN MEXICO well: the ability to share printable discount and adopt best practices for digital
in the iconic balloon glass or in a highball glass,
without any media buys In Mexico, Chivas launched a coupons. communication.
directly connected to the market. symbol of refreshment. The campaign celebrates
programmatic advertising campaign
the different ways of serving Ricard and references on several media sites with customised
consumers long running debate about just how to more than content based on web users browsing
9,000
add water: in a balloon glass or a highball glass? behaviour, to promote The Venture
(see page 46). Cost per inquiry dropped
A conversational campaign 30% as a result of the initiative and the
In addition to a far-reaching display campaign, content engagement rate increased
interactions (likes, shares by 80%.
the initiative was present on the Internet with
and comments) on Facebook
a dedicated website and a Facebook campaign ABSOLUT IN COLOMBIA
that sparked a real conversation between fans Pernod Ricard Colombia used the data
on social media. The brand also interacted with collected on the barmanclub.co to
consumers via a partnership with MinuteBuzz.com, promote the Absolut Warhol limited
an independent media site. The competition To learn more: edition with a direct call-to-action
between the balloon and highball glasses was neck http://www.ballonvsallonge.com/ to e-Commerce. The initiative was a
and neck, ending at 52% to 48%, respectively. success: the conversion rate rose by 7%
and return on investment trebled!

HIGHLIGHTS - Pernod Ricard Deutschland -

- Beefeater -
FOCUSED ON BEEFEATER AND
2.6M CUSTOMERS NEEDS SPOTIFY: A ROCKING

CAMPAIGN!
The customer service and sales teams at
cases sold
Pernod Ricard Deutschland conducted a Beefeater launched an innovative campaign in
simple, effective customer survey designed June 2015 called Beefeater London Sounds. The
+3%
to provide insight into needs and optimise one-of-a-kind initiative brought together the
quality of service. The questionnaire iconic London gin Beefeater with global music
covered a number of topics, including how streaming giant Spotify and the UK capital.
by value the products are perceived and relations The musical heritage of the London scene
with Pernod Ricard. The results are in: the nearly a century of pop, rock, electronic, dance,
+4%
level of customer satisfaction stands at a disco and hip-hop sounds is just a click away questions. The goal of the interactive expe-
more-than-respectable average of 4.38 out on the brands site, beefeater.com. Browsing rience was to stimulate conversation among
of 5. Feedback from this important first step a map of the city, visitors can (re)discover the the players about their musical tastes, in par-
was used to establish an action plan in line classics that have secured the UK capitals rep- ticular through contributions from music
BEEFEATER volume in Spain
with the companys strategy and customer utation as a mecca for music. They can listen to bloggers and other opinion leaders. Beefeater
expectations. the hits by genre, decade or location, depend- created a limited edition with a unique design
ing on their tastes or preferences. to celebrate this unprecedented digital event:
This unique campaign was promoted on the bottle displays a shiny, timeless vinyl re-
- Pernod Ricard Facebook, often with posts containing trivia cord with a Union Jack centre label.
Beefeater MIXLDN: a London tradition Tasting botanicals at Beefeater
that keeps up with the times Gin Lane Market
Winemakers & Espaa -
Thirty bartenders from around the world

FINE-TUNING E-CRM HIGHLIGHTS
travelled to London in January 2015 for the In May 2015, in Ireland, Pernod Ricard set
up a travelling On-Trade pop-up bar that
WITH EXACT TARGET - Pernod Ricard Chile -
Beefeater MIXLDN cocktail competition
Global Finals, which was themed around served made-to-order gin and tonics, giving BALLANTINES
consumers the chance to taste the brands To optimize the effectiveness of digital
London inspires you, you inspire London.
American bartender Brandon Philips was entire range of botanicals: Beefeater Seville campaigns and optimize costs, Pernod LAUNCHES A RECORD
declared the global winner of the competition. Orange, Beefeater Juniper Classic, Beefeater
Peach Dusk and Beefeater Eastern Tonic.
Ricard Winemakers and Pernod LABEL
Ricard Espaa have jointly rolled out
an innovative e-CRM solution, called PERNOD RICARD AMERICAS
Ballantines has launched its own record
ExactTarget. The new software has label in Chile, Ballantines Records, with
+2% +5% +46%

enhanced the customer database, the aim of forging closer ties with younger
improved the impact of campaigns and consumers. Bands were invited to a house
changed how Pernod Ricard Brand specially restored for the label and fitted out
Companies, local brands and digital with rehearsal rooms and a recording studio.
agency partners work together. sales in Americas Sales
Each groups performances were uploaded in the region excluding USA of Avin
to the Ballantines Records website and onto
social media. In just four months, 20 bands
- Pernod Ricard Australia - recorded songs and over 51,000 unique visi-
CHIVAS REGAL EXTRA tors logged on to ballantinesrecords.cl.
Pernod Ricard Americas &
GENERATES BUZZ The Absolut Company
spreads its wings in So Paulo
Beefeater burnishes its medals Beefeater and Hackett:
in new campaign fashion forward
In October 2014 Australia became the first
country to launch the latest gem from Chivas Absolut set up two concept shops in the
Regal: Chivas Regal Extra. The brand made a duty-free areas of Terminals 2 and 3 at the
Beefeater evolved its brand credential global Super Premium gin Beefeater 24 and mens So Paulo airport. The two boutiques serve
advertising campaign called Discovery, fashion brand Hackett London pooled their
stir on the web during its campaign for this
as a showcase for the brands entire range
which rationalised why the brand is talents to pay tribute to British style. super-Premium whisky with a YouTube video complete with lighted display windows and Mastering social media
The Worlds Most Awarded Gin. The two London brands jointly published style called Welcome to the Next Level followed video projections of bottles and include
The three-advert series looks back on the guides for men across the globe, featuring by a series of 16 Big Advice videos with Chris special areas devoted to each offering,
major distinctions that have earned the brand smart pairings of Beefeater 24 cocktails and Noth, the American actor known across the including Absolut Elyx. The US teams have created a special handbook
its reputation: the finest botanicals used in Hacketts seasonal collections lines. on how to stay within the bounds of the law
the recipe, the most experienced gin Master globe for his role as Mr. Big in the TV series when using social media. The handbook
Distiller and the unchanged distillation process. Sex and the City. The campaign received includes practical examples and has been
3.3million views. A platform for collecting distributed to a wide audience at the company,
and analysing data including marketing teams and partner
agencies in particular.
To learn more:
www.youtube.com/watch?v=VkvNIuX8va8
The data management platform rolled out by
Pernod Ricard Americas in September 2014
anonymously traces visitor activity on its Meet the creators of the great company
To learn more:
website and integrates all media, web, mobile
www.ballantinesrecords.cl
and mobile data. The platform then analyses
this colossal amount of information, resulting The US subsidiary has produced and uploaded
in highly effective campaigns at a very low cost a series of videos illustrating the Groups
a best practice that is already yielding results slogan, crateurs de convivialit. Viewers are
(see page 80)! treated to a behind-the-scenes tour of several
brands Absolut Elyx, Jameson and Seagram
and hear from employees as well.

Infographic
The digital world
is extending its Connected
content
Smart
data use
Mobile
commerce
Connected
organisation
reach throughout
Pernod Ricard
As a proven means of creating value,
digital channels are a key strategic THE OBJECTIVE: TO BE ANALYSE DATA FROM OUR 97% OF OUR ONLINE WE HAVE DEPLOYED
AS VISIBLE AS POSSIBLE CONSUMERS TO LEARN SALES ARE MADE ESSENTIAL
priority at Pernod Ricard. The goal? WITH RELEVANT CONTENT ABOUT THEIR REAL-TIME INDIRECTLY BY INFRASTRUCTURE TO
To learn more about consumers and WHEREVER USERS BEHAVIOUR. PARTNERS SUCH AS ENSURE OUR STAFF ARE
interact with them, so as to showcase CONDUCT SEARCHES AND AMAZON, TMALL, TESCO, CONNECTED AND TRAINED.
Pernod Ricards products and tailor its MAKE PURCHASES AND AND WALMART.
services to their needs. WHEREVER THEY INTERACT
WITHIN OUR CATEGORY.
Antonia McCahon
Digital Acceleration Director, Global Business Development
Data is at the
heart of our
digital initiative
One of our digital priorities is something we call

data-smart action, to help us develop a detailed
knowledge of our consumers and establish a
relationship with them on as personal a level as
25%
possible. The challenge is to reach the right people
6B
via the right channels at the right time. Thanks to
the data weve compiled, with their consent, from
Internet users visiting each brands website, we can
develop targeted promotional initiatives that are e-Commerce is
of the advertising
highly effective. The Chivas campaign in Mexico
searches the fastest-growing sales channel budget
Collect and qualify
+20%
and the Absolut campaign in Colombia (see page 77) per year connected the data is earmarked for digital media
are good examples: contact costs are lower, content with our industry
commitment rates are much higher and sales receive
30M
a boost, all without infringing on the privacy Our MOOC, Digifit, has a
of our customers. year-on-year completion rate of
followers
worldwide
Use the data to
target advertising
93%
in our core target

Four accelerators to see things faster Innovation
The definition Innovation 03 Joint interview

given by Yves Schladenhaufen
I
nnovation plays a central role in driving the Groups growth and appeal. Vincent Beaumont,
Pernod Ricard Research Center Director (RC), and Brett McKinnon, Operations Director
Executive, Pernod Ricard Winemakers, describe a new area where the Group is breaking
ground: services and experiences that create moments of convivialit.
nano-factory we can produce small runs of
Innovation
marketable products in the very early stages
of development, to test whether concepts
are feasible. As a result, we can provide sup-
port for projects from the design stage until
the final transfer to production.
B.M.: Innovation is all about exchanging
ideas and combining our know-how. For ex-
Vincent Beaumont Brett McKinnon
ample, all of our teams viticulture, market-
Pernod Ricard Research Operations Director Executive,
Center Director (RC) Pernod Ricard Winemakers
ing, and so on helped to develop our new
line of Premium Jacobs Creek wines. Its also
a business driver: a large part of our growth
derives from the new products we create.
HOW DO YOU VIEW INNOVATION anticipates major societal trends as part of
AT PERNOD RICARD? its focus on disruptive innovations. And
Vincent Beaumont: Pernod Ricard the Research Centre provides the full range
truly does boast the resources and ambition of scientific and technological expertise
to innovate. Our innovation strategy, which is required for each stage of the innovation Key figures
5
based on a combined analysis of business op- process: research and market watch pro-
portunities, consumer trends and our brand grammes, feasibility studies, prototyping
portfolio management, sets clearly defined for formulations and packaging. At our projects in the creative development
growth objectives. It gives us all the ingredi- and testing phases
ents for a winning cocktail! as a result of the Kangaroo Fund

We have very clear objectives when it
comes to innovation: shifting our range
WHAT EXACTLY DOES
INNOVATION ENCOMPASS?
V.B.: There are three types of innovation:
8,500 new spirits
introduced in the United States each year
of products and services upmarket, and conventional innovations, such as brand
by the industry
extensions; stretch innovations, where we
creating new brand experiences. Innovation push the boundaries of our operating meth-
underpins our entire vision, ambition ods; and breakthrough innovations that usher
in new convivialit-related business models. COULD YOU TELL US SOME OF THE
and actions; marketing, as well as sales, Each of these is rooted in current or future BANNER PROJECTS YOU WORKED
HR, R&D, production, legal, finance and consumer expectations. ON IN 2014 AND 2015?
Brett McKinnon: Consumers really play V.B.: Our/Vodka has been an exciting
communications teams all have a part to a key role: at Pernod Ricard Winemakers, they adventure. The idea was to set up local mi-
play. It is our ability to innovate that allows participate in every stage of a products lifecy- cro-distilleries modelled on craft brewers. We
us to create the conditions for long-term, cle. Initially their help comes from generating provided technical support to Absolut staff by
new product ideas during brainstorming ses- supplying turnkey production units in places
profitable growth. sions, but they also contribute during product like Berlin, Seattle and Amsterdam. Weve also
development and at the numerous tastings we focused a lot of attention on The Fine Cock-
organise. Each year more than 200,000 con- tail Company project, which was launched by
Yves Schladenhaufen sumers visit our Jacobs Creek Visitor Centre employees who were part of the first season of
in the Barossa Valley to test our products. the Kangaroo Fund. The concept was to de-
Innovation and Portfolio Strategy Director, At Pernod Ricard, sign and distribute Premium cocktails made
Global Business Development HOW IS PERNOD RICARDS
INNOVATION ECOSYSTEM
innovation is first from fruit juices and spirits. That represents
a major change in Pernod Ricards business
ORGANISED? and foremost a team operations, since were required to manage a
V.B.: At Pernod Ricard, innovation is first cold chain.
and foremost a team endeavour. Although endeavour. B.M.: For its part, Pernod Ricard Wine-
most of our brand extensions are initiated makers has hit on a wonderful innovation
by the Brand Companies themselves, our with its Jacobs Creek Double Barrel wines
entire workforce has access to the Kangaroo (see page 87): the barrels used to mature Premi-
To learn more Fund (see page 92), an in-house investment um whisky for 20 years are reused in the win-
https://youtu.be/4Tv2o7HkcZA fund, which gives employees the opportu- emaking process. The idea has given birth to
nity to develop their own ideas. Moreover, a new style of wine that offers a more varied
our special Breakthrough Innovation Group blend of flavours.
82 83
The picture
Crteil, Pernod S.A. Headquarters
Nicolas Tracz Lucile Robin Frdric Prisset

Digital Marketing Commercial
85
Portfolio Li Wei
Crteil, France
Marie Maggioli Patrick Venot

Marketing Sales representative

Around the world - Our/Vodka -

LOCALLY MADE
HIGHLIGHTS
Our/Vodka meets the rising demand for

locally-made artisan products bysetting
up micro-distilleries run by local entrepre-
4M
Innovation
cases sold
neurs that distribute vodka via unconven-
tional channels. Our/Vodka is presented
Stable
in small bottles sealed with a crown cap.
While the formula is the same, the ingredi-
ents are locally sourced whenever possible.
5 micro-distilleries have now opened and by value
4 more are under construction since Berlin
+7%
started operating 2 years ago.
To learn more:
http://ourvodka.com/our-film/ HAVANA CLUB volume in Cuba
FOCUS
- Pernod Ricard UK -
HAVANA CLUB:
MIX, MUDDLE, MIX Havana Club 3 Years, T Decides: a programme
a heart-warming campaign to raise youth awareness
Havana Club UK ran a summer-long
360 campaign with a strong digital
focus, designed to encourage consumers THE CONNECTED BOTTLE: The slogan of the new Havana Club 3 Years Since its launch in October 2012 the
campaign You just know when its from the T Decides (you decide) programme has
to mix authentic Cuban mojitos. A WORLD FIRST heart has been featured across all media reached over 500 young Cubans aged 12 to15.
Interactive advertising, location-based since November 2014. A fun campaign The initiative was developed with Cuban
text messages, a dedicated website, that highlights the passion and authenticity authorities to raise awareness and foster a
of the Cuban people. sense of responsibility among Cuban youth
a simplified route to purchase on the with regard to alcohol consumption.
web and curated discussions on social
media all formed part of the campaign,
which recruited over 46,000 new
Facebook fans. Another highlight
of the campaign was the Casa
Havana Mojito, where nearly
10,000 people learned how to make
a Cuban mojito. - Pernod Ricard Winemakers -
JACOBS CREEK:
FRESH IDEAS
Jacobs Creek Double Barrel has pushed
the boundaries with the introduction
of a unique wine style. Jacobs Creek
Double Barrel builds on the traditional
The Monaco Grand Prix on 23 May 2015 which is why the connected bottles are
aging process, which takes place in Havana Club Unin and Cohiba: Havana Club wins gold
provided Mumm with the perfect platform to produced in limited quantities and only
unveil its new connected bottle concept to a for iconic venues.
French & American oak barrels, and a perfect match at The Rum Masters 2015
few lucky VIP guests, with the famous DJ and adds an additional layer of complexity
producer Mark Ronson. and texture by aging the wines for a Unveiled at the Habanos Festival, Havana Club Havana Club performed brilliantly at The Rum
To learn more: second time in old Scotch and Irish Unin is the first Cuban rum created specifically Masters once again, taking home two gold
https://www.youtube.com/
An enlightened concept whisk(e)y barrels. This innovative process to be enjoyed with the spicy flavour of a Cohiba medals. Havana Club 3 Year Old won its third
watch?v=U-MrxfpyIqU
cigar another of the islands iconic brands. consecutive medal.
The mechanic: a sensor in the cork is uses the spirits barrels to create an added
- Pernod Ricard Australia - connected to a multimedia system. Popping level of intricacy and texture for a richer,
the cork triggers a unique interactive deeper, smoother finish. This successful
CHAMPAGNE experience with audio and video streamed innovation is now being rolled out
DELIVERED TO YOUR onto the screen. Its a great way for consumers
to spend time in the spotlight and interact
in 20 markets worldwide.
DOORSTEP! with the club!
Launched in November 2014 to coincide Personalised nights out

with the famous Melbourne Cup horse race, Inspired by the best nightclubs, this experience
can be tailored to the desires of club owners,
Press for Champagne is an app that lets cus-
who can control the lighting and customise
tomers order champagne on their smart- the experience they offer their customers.
phone in a few simple clicks. The nearest This innovation is aimed at hip, urban
distributor then handles the transaction customers seeking exclusive experiences,
directly with the customer, arranging delivery
and collecting payment.

- Pernod - - Havana Club - HIGHLIGHTS

A BLEND ESSENCE OF CUBA:
0.7M
OF FLAVOURS NEW FLAVOURS,
AND TALENT NEW COCKTAILS
cases sold
Suze contracted the services of three lead-
+7%
ing bartenders Fernando Castellon, Joseph
Biolatto and Julien Escot and gave them
carte blanche to think new products up.
The bartenders boldly combined their tal-
ents to produce a range of three top-quality by value
bitters with complementary flavour profiles:
+31%
Aromatic Bitters, Orange Bitters and Red
Aromatic Bitters. The bartenders creation
turned heads at the Spirits Awards in
New Orleans in July 2015, where it was MUMM volume in Australia
named among the four finalists in the New
Ingredients category.
A double-screen Mumm on board Alain Thbaults

digital experience flying boat
- Pernod Ricard USA -
A NEW SCOTCH The music video Dangerous, which shows Since April 2015, G.H. Mumm has sponsored
a Formula 1 race featuring David Guetta, Alain Thbault and his Hydroptre boat,
WHISKY TAKES internationally acclaimed DJ, has garnered which flies over the ocean using its immersed
ON THE US MARKET 100 million views. The video partly owes
its success to its interactive double-screen
wings when hitting a certain speed. The
brand and the famed skipper share a number
experience, which enables mobile viewers of values, namely their passion, commitment,
Pernod Ricard USAs new blended to interact with what is happening pioneering spirit and thirst for victory.
whisky, Barrelhound, is matured in on the screen.
old American oak casks previously
used for bourbon and has a sweet Essence of Cuba is a new range of drinks fla-
finish of vanilla and honey notes. vourings created with Havana Club 7 Years,
Barrelhound offers a new aroma the first Cuban rum produced specifically
and taste experience for Scotch and to be enjoyed neat or on the rocks. Mainly
bourbon connoisseurs in a US market aimed at bars and restaurants, Essence of
dominated by domestic whiskies. Cuba has won over leading bartenders. The
four new flavourings Island Fruit, Aromatic
Leaf, Coffee and Honey were all developed
by The Bitter Truth. The range is available in #DareWinCelebrate
24 markets including Cuba, Germany,
France, Greece, Spain and the UK since
October 2014. Essence of Cuba was named
Mumm 6: a limited edition The Collection
the 5th most innovative spirits launch of 2014 aged for 6 years du Chef de caves
in the Top 50 list published by The Spirit
Business magazine.
For this limited edition, Cellar Master Didier Mumm has re-released a selection
Mariotti extended the ageing time to 72 months, of three exceptional Cordon Rouge
rather than the usual 30, to achieve perfect Millsimes 1985, 1990 and 1996
maturation. Breaking with Champagne norms, offering customers an opportunity
this unique cuve demonstrates Mumms ability to rediscover the archetypal flavours
to innovate with a new approach based on of these classic vintages.
ageing, just like for other spirits such as whisky.
- Irish Distillers - nearby brewery to age its Irish stout; once

JAMESON CASKMATES: returned to the distillery, the casks were re-
filled with Jameson original blend and left to
AN INNOVATIVE mature. The magical moment that followed
WHISKEY resulted in Jameson Caskmates, a delicious
new whiskey with notes of coffee, chocolate
An inspired exchange of casks between and hops. A limited edition of 3,500 bottles
Franciscan Well Brewery and the Midleton was originally released in 2014 with great
distillery led to the creation of a new whis- success. Though it was initially reserved
key, Jameson Caskmates. The story goes as for the Irish market, there are now plans to
follows: Jameson lent whiskey casks previ- distribute Jameson Caskmates in USA, South
ously used to mature Jameson whiskey to the Africa, Australia, Canada and France.

Infographic
Ecosystem
An INTERCONNECTED system or group of components
The innovation ecosystem

formed by the interaction of a community
at a glance
While innovative products are essential, Pernod Ricard also devotes
its attention to developing innovative services and experiences.
To further this ambition, the Group has established a number of in-house
MARKET BRAND
resources that are thoroughly interconnected.
COMPANIES COMPANIES

They identify market opportunities, They generate new concepts by drawing
deploying innovations by the Brand on the strength of their brands and their
Companies and/or launching local initiatives expertise within their respective categories:
to respond quickly to identified whiskey, vodka, cognac, etc.
consumer trends.

Alain Dufoss
Managing Director
The GBD unit coordinates with affiliates
to define a working relationship with
the innovation divisions, and prioritises
Group-wide initiatives.
The BIG (Breakthrough

Innovation Group)

An innovation fund for the workforce,
designed to give employees the opportunity
to develop their own ideas outside the
Alexandre Ricard has singled out two priorities for fulfilling
business confines of each affiliate.
our ambitions: increasing our sales and instilling a new mindset
throughout the Group. That mindset can be summed up in a Gutenberg project
few words: be daring, take risks, attempt new things, explore,
view all sides, be entrepreneurial and break down barriers.
The BIG is undoubtedly an illustration of that mindset. First,
because its an innovation itself: an entity that operates like a
completely independent start-up, not bound by the traditional
procedures imposed by a large company and devoted to
breakthrough innovation, is still an unusual phenomenon.
Moreover, in order to innovate, we need to be prepared to grasp
new opportunities by following new pathways. That kind of
attitude requires a sense of freedom, courage and tenacity, as
well as a certain spontaneity, a willingness to look at something
without any preconceived notions. And you need a special kind
of independence in order to do that. As both an insider and an
outsider, the BIG complements the Groups other contributors
to innovation (its innovation ecosystem), while serving as a
liaison between the Group and outside experts and developing
new practices and new experiences. Although it explores the
future of conviviality in whatever form that might take, its aim
is to turn its concepts into tangible business opportunities that
can generate future growth. Thats the challenge behind Project BIG team The Research Centre lends its scientific and technological expertise
Gutenberg, which the BIG is currently guiding through a pilot to the various hubs within the innovation ecosystem.
phase in the field before its launched on a broader scale.

Highlights THE KANGAROO FUND

IN A NUTSHELL
on the Kangaroo Fund 1

Employees pitch their idea
in a one-minute video.
2
Candidates write a description
Marie Bodec, Aliki Zachariadis, of the expected benefit to consumers
Deputy Director, Marketing Manager, and produce a second, two-minute video.
Business Analysis, Pernod Ricard EMEA Chivas Brothers Ltd 3
10 candidates are selected for training
An inside
sessions on trials.
4
Innovation is a Its vital to test
look at
The finalists pitch their idea to a judging panel.
This years judges: Alexandre Ricard; Greg Jackson,
mindset that needs your ideas early a business angel; Conor McQuaid, Global Business
intrapreneurship
Development Director; and Yves Schladenhaufen,
to be cultivated. on at retail outlets. Innovation & Portfolio Strategy Director,
Global Business Development.
I think that deep down, Ive always wanted I first heard about the Kangaroo Fund at our
to start my own company. But actually taking in-house seminar at Les Embiez. It was a real
Entrepreneurial spirit is a the plunge is another story. Then the Kangaroo eye-opener and gave me the motivation to
core value at Pernod Ricard, Fund came along and offered me an excellent take part in this incredible human endeavour
embodied by the Groups 18,000 opportunity to follow my dream while keeping myself. The first idea that I presented came to
employees and the Kangaroo my current job. At first I didnt really have any me fairly naturally I drew inspiration from
ideas to present, but I had a eureka moment the beauty industry, where I had been working
Fund, an internal innovation while organising a birthday: I should offer home- prior to joining the Group. While the current Adrien Timpano,
programme launched in 2012 tainment products and services. The idea stuck incarnation of my idea bears little resemblance Brand Manager,
that enables employees to with me. I even had people from my team act as to what I initially presented, the consumer in- Pernod Ricard Japan
propose and develop innovative extras in my first minute-long video submission. sight hasnt changed. The experience has taught
After the second video in the selection process, me how vital it is to test your ideas directly at
ideas. Following a tremendously I took part in workshops to put myself in con- retail outlets, because the feedback is much
successful debut, the fund is
back for a second season.
sumers shoes before beginning the interviews
and tests in the trial phase. As a result, I was able
more extensive and spontaneous than with
focus groups. As a marketing manager, it was
The Kangaroo Fund
We hear from the finalists. to continually make adjustments to my project an important lesson for me to learn! I cant wait motivates us to keep
based on consumer feedback and assemble a to apply what Ive learned from my experience
team of in-house and outside experts who were with the Kangaroo Fund to new projects, while pushing the envelope
excited to help out. I shared my adventures on
my PernodRicardChatter internal blog, which
also continuing to develop my idea.
and reach new heights.
made me realise the extent to which innovation
is a mindset that needs to be continually culti-
vated. I hope to get my project off the ground I had taken part in the first season of the Kan-
quickly and am proud to have proven to myself garoo Fund when I was a trainee at Pernod. Its
that I could rise to the challenge. an initiative that Im really keen on, so I submit-
ted more ideas this year. It truly is an exciting
challenge to be an entrepreneur and rewrite the
rules of business! When I found out that one of
EVERYONE KAN DO my ideas had been selected, I brought several
other people at Pernod on board to form a pro-
A look back at the first season
ject team. I think thats something the judging
110 Two projects from the first season are
panel appreciated. My idea has evolved greatly
ideas were submitted currently being readied for the market:
by employees during since its inception, but one thing that hasnt
season two - Fine Cocktails: a Paris-based line of bottled changed is the benefit to the consumer. The
fresh cocktails concocted by bartenders next step is to continue trialling my idea with
and ready to be enjoyed. consumers and then develop prototypes with
5 the help of the Pernod Ricard Research Centre.
projects are currently - Four Tunes: a project under development
in the concept
It is still early days, but I can already say that
in China that is set to be unveiled during the
and trial phase the Kangaroo Fund is an extremely rewarding,
first half of 2016.
convivial experience. Ive learnt a great deal by
working with the Groups innovation experts
2 and colleagues worldwide. A big thank you
projects are set goes out to Astrid Froment and her team!
to become start-ups
(small business units)

Four accelerators to see things faster Premiumisation & Luxury
The definition Premiumisation & Luxury 04 Joint interview

given by Thibaut de Poutier de Sone
P
remiumising and innovating to build value: thats how the Group plans to become the
worlds top producer of wines and spirits. Tareef Shawa, Luxury & CRM Director, Global
Business Development, and Kate Zaman, Prestige Development Manager, Pernod Ricard
USA, describe this ambitious campaign.
digital capabilities also enable us to leverage

CRM more effectively to connect with prior-
Premiumisation
ity consumers.
T.S.: Travel Retail is a critical pillar of
our Premiumisation strategy. Its a power-
ful touch point to attract target consum-
ers in a favourable shopping environment.
& Luxury
It also raises the international profile of our
prestige products, while reinforcing brand
Tareef Shawa Kate Zaman desirability and message consistency in our
Luxury & CRM Director, Prestige Development Manager domestic markets. It is a significant channel
Global Business Development Pernod Ricard USA for all of our LeCercle brands (see page 98).
WHAT ROLE DOES TRAINING PLAY?

T.S.: Luxury is not just about products
HOW DO PREMIUMISATION AND Elyx Heart of Omnia experience designed and brands; its a state of mind. Within our
LUXURY SPUR GROWTH? to be activated in the Hakassan Nightlife organisation, were evolving our collective
Tareef Shawa: We are systematically group in Las Vegas. Some, like our illumi- mindset through special Luxury training.
moving upmarket by offering products of nated anemone service ritual created for For example, Pernod Ricard University
a higher quality than those available in the Perrier-Jout, have been successfully emulat- developed a customised in-house training
market, by enticing consumers to trade up ed by colleagues in France, Singapore and the programme with cole Htelire de Laus-
from local to international spirits, and by Philippines. Our increasingly sophisticated anne to give our Prestige sales force and VIP
exploring new consumption occasions for relationship managers a more thorough un-
our Premium brands (see page 70). Beyond derstanding of our LeCercle brands and im-
premiumisation, the opportunities offered prove the luxury fluency and confidence
by the luxury segment are growing rapidly, of our teams.
with an attractive pool of 135 million affluent
consumers worldwide, plus 14 million high-
net-worth individuals* (HNWIs). We want
to ensure that our LeCercle portfolio of
Key figures
luxury spirits and Champagnes is available,
3
Our aim is to lead the luxury spirits segment visible and actively purveyed at the iconic
globally. Pernod Ricards strategy is built on establishments (hotels, resorts, restaurants
and bars) where our target consumers travel Travel Retail
creating value through a systematic approach and relax. is Pernod Ricards third largest market
worldwide
of brand upscaling that we call Premiumisation. Kate Zaman: As the number-one

40%
luxury market, the US represents a major
To do so, we invent the product and services that priority. Four million HNWIs live in the US,
will attract and retain affluent consumers and accounting for 29% of this elite population
market share (ranked first)
worldwide. Super Premium represents the
high-net-worth individuals around the world. fastest-growing segment in the industry,
in the Prestige segment of Travel Retail
representing over $5 billion in sales. Our We want to ensure

team competes in eight major markets fo- that our LeCercle
Thibaut de Poutier de Sone cusing on both sales and marketing initia- K.Z.: Its very important that our staff
Executive VP On-Trade and Luxury, tives supporting the LeCercle brands. This portfolio of luxury spirits and representatives are truly knowledgea-
Global Business Development emphasis on luxury is already garnering re- and Champagnes is ble about the products and understand the
sults; this past year the LeCercle portfolio experiences we want people to have when
grew by nearly 50% in the iconic establish- available, visible they enjoy our brands. Training also rein-
ments managed by our team. and actively forces team confidence regarding the luxury
segments in which our brands operate and
WHAT ARE SOME OTHER RECENT purveyed at the iconic the interests of the HNWIs with whom we
INITIATIVES?
K.Z.: Our luxury approach requires
establishments. interact. It is crucial that we pass this up-
market branding and our brand stories on
constant innovation. Our team works in the to our trade partners: thats how were going
To learn more field alongside our customers to research to win the last three feet (see page 49) to
https://youtu.be/q_21oAHj44k and develop service rituals and bespoke sell our brands!
experiences that generate excitement and
publicity for our brands, such as our Absolut * HNWIs have over one million dollars in liquid financial assets.
94 95
The picture
Place des tats-Unis, Pernod Ricard Headquarters
Ludmilla Stephkov Nathalie Lavoisier Graldine Dichamp

Marketing Legal CSR-HR
97
Portfolio Li Wei
Paris, France
Gilles Boissy Sbastien Hubert

Communications Finance

Capturing TRAVEL RETAIL
the luxury Tackling consumers on the move

Skyrocketing numbers of travellers, an
market
international, well-connected clientele and
a favourable environment for innovative
activations make Travel Retail a natural
setting for the LeCercle brand portfolio.
Travel Retail is the largest retail market

for prestige brands and remains a critical
brand-building channel for Pernod Ricard.
Prospects for growth are bright, with the
number of passengers projected to double in
To conquer the luxury market, Teams monitor these venues to ensure the pres- the next 15 years to seven billion travellers.
ence, visibility and activation of the LeCercle Travel Retail is a powerful touch point
Pernod Ricard draws on its LeCercle
brand portfolio. Campaigns are underway to ex- to showcase the LeCercle portfolio to an
portfolio of prestige spirits and pand distribution at five-star hotels, luxury resorts international audience, recruit wealthy
58B
champagnes to connect with and private membership clubs and to reach out to consumers in a favourable environment,
consumers through evocative brand non-traditional preferred markets such as wedding highlight the brands appeal and reinforce
storytelling at some of the worlds and event planners and those who lease private value of the global luxury messaging that is also conveyed
jets, villas and yachts. wines and spirits market in domestic markets.
most famous institutions.
MISSIONS AND TRAINING To reach target consumers of LeCercle
A number of carefully selected affiliates have been products, marketing teams consider factors
allocated additional funding this year to accelerate such as transit routes to top destinations.
With its LeCercle strategy, Pernod Ricard seeks to
cement its global dominance in the luxury spirits
sector, by inventing the products and services
their efforts to capture the luxury market. Their
goal is to expand distribution and enhance the vis-
ibility of LeCercle products at establishments that
+5%
annual growth rate
Portfolio visibility at airports in Los Angeles
and San Francisco may play an important
role in the purchases of Chinese travellers.
that attract so-called top affluents, including the are considered high-priority. of the market Likewise, the path to purchase prior to
14 million high-net-worth individuals (HNWIs) arriving at the point of sale is analysed to
around the world.(1) * Pernod Ricards LeCercle brand portfolio: determine how best to influence an affluent
consumers purchase decision.
The case for targeting luxury markets is compel- Royal Salute 21 Year Old,
ling. HNWIs are increasing in number by 7% annu- Royal Salute 38 Year Old, Among the actions taken by Pernod
ally and are responsible for nearly 20% of total pur- Martell Cordon Bleu, Ricard teams to capitalise on Travel Retail
chases in the luxury sector. The global luxury wines Martell XO, opportunities are airport pop-up shops,
and spirits market is estimated to value 58 billion Martell Chanteloup Perspective, which attract consumers by inviting them
and is growing at an annual rate of 5%. The 150 Martell Creation Grand Extra, to experience the brands universe. At So
billion spent at luxury hotels and resorts offers Martell L'OR de Jean Martell, Paulo airport, for example, a Perrier-Jout
formidable retail potential for LeCercle products.(2) Perrier-Jout Belle poque and earlier vintages, shop opened for five weeks in spring 2015 and
Absolut Elyx, engaged more than 8,000 consumers with
SELECTING TARGETS Plymouth Gin, the prestige champagne brand. At airports
The objective is to ensure that the LeCercle port- Ballantine's 30 Year Old and older, in Hong Kong and Paris, Martell pop-up
folio of luxury spirits and champagnes* is readily Chivas Regal 25 Year Old and older, experiences earlier this year helped amplify
available at the iconic establishments where its in- The Glenlivet 18 Year Old and older. the Martell brands 300th anniversary with
tended customers stay, travel and play. With help multisensory experiences that gave visitors a
from Pernod Ricards market segmentation tool, chance to discover the brands craftsmanship
hundreds of these legendary destinations in key and heritage in cognac-making, as well
luxury markets have been identified and targeted as a wide range of luxury and
worldwide, with more being added every day. limited-edition cognacs.
(1) Source: CapGemini World Wealth Report 2015.

(2) Source: Bain & Company Global Luxury Goods Worldwide
Market Study 13th Edition (Fall 2014).

Around the world - Pernod Ricard UK -

FOCUS
MISSION LONDON
Mission London is tasked with making sure
the LeCercle luxury portfolio is present, vis-
ible and activated in London, a city that pre-
sents a significant opportunity to showcase
Premiumisation
the LeCercle portfolio to affluent consumers. TIMELESS WHISKY,
The Mission London team uses its dedicated
resources to ensure the LeCercle brands are INFINITE TASTE
& Luxury
widely distributed in Londons best-known
restaurants, bars and private clubs and enjoys
pride of place at the citys flagship nightclubs.
The programme has been successful in in-
creasing sales, forging new relationships with
key retail customers and raising the profile
of LeCercle brands in Londons top estab- - Chivas Regal -
lishments. Building on the programmes THE ICON: SYMBOLISING
success, similar Missions are being prepared
in a variety of other cities. A NEW ERA OF LUXURY
Created by blending some of the rarest
and oldest whiskies available, Chivas Regal
FOCUS The Icon represents the pinnacle of luxury
Scotch whisky. An ideal blend of the best
whiskies from more than 20 distilleries
across Scotland, this ultra-prestige creation
includes some rare whiskies from distilleries
that are now lost forever.
THREE CENTURIES OF EXCELLENCE
as global ambassador and guest of honour.
300
Media and other VIP guests representing
more than 20 countries were on hand for the
occasion. Local festivities modelled on the
Versailles event were also held in Martells key
international markets. years of master Royal Salute introduced The Eternal Reserve,
Other tricentennial activities included the launch craftsmanship a superb whisky that blends tradition with
of four limited editions (see page 102), unique the contemporary. Through an innovative
21
because once crafted each blend was finished blending technique, the brand has created
Ranked as one of the
top 10
in barrels made from a 300-year-old oak tree. a whisky that will, quite literally, live forever.
Martells Cellar Master, Benot Fil, researched
Jean Martells original correspondence to create Circular Blending
Martell Premier Voyage limited edition blend, in Prestige spirits Royal Salute began by selecting incredibly Gun Salute product
honour of the founder. brands worldwide rare and precious whiskies with an of the range named
International travellers were able to join in exceptionally long finish. These were then after the fireguns shot
3
the spirit of the celebrations as well, through blended together, employing a unique to celebrate
pop-up shops opened at the Paris Charles process called Circular Blending and the Queens coronation
De Gaulle and Hong Kong airports. They married in 88 casks to form the inaugural
15
also had the opportunity to discover the batch. Royal Salute is committed to using
brands history and discover the campaign: values of the House: - The Glenlivet - the precious liquid from this original blend
A series of exceptional events, product Spirit of Conquest, Authenticity, as part of every subsequent batch for decades
launches and activations highlighted the
The art of Martell for 300 years. Martell
also marked the anniversary with a return Generosity THE WINCHESTER to come. Preservation of the original blend
celebration of Martells 300th anniversary and to its roots in Cognac, by renovating the COLLECTION: through perpetual recirculation results in a international tournaments
provided worldwide visibility to the oldest and historical site of Gtebourse, the birthplace smooth, voluptuous whisky that justifies its of polo sponsored
most prestigious of the great Cognac houses. of the House. The site has been redesigned RELEASE OF THE original name: uisge beatha (eau-de-vie).
1911
Since its founding by Jean Martell in 1715,
Martell produces, exports and markets cognacs
to emphasise its links with the town and to 1964 VINTAGE The first batch of 88 Casks, released in 2015,
reveal its historical, industrial and architectural
whose quality is recognised worldwide. heritage. In conjunction with this project, the are being sold exclusively in Travel Retail.
brand opened an exhibition in September
To mark The Glenlivets launch of the new The accompanying innovative experiential,
A tricentennial marked by pure elegance at the Muse dArt et dHistoire de Cognac, in Winchester Collection, the worlds first digital promotional and merchandising first year of
In May 2015, Martell celebrated its tricentennial partnership with the town of Cognac and the collection of rare and precious 50-year-old campaign helps tell the true story of Royal the Coronation Cup
amidst the splendour of the Palace of historical association Cognac Patrimoine. single malt Scotch whiskies, the inaugural Salute The Eternal Reserve: that eternity
Versailles, of which it is a sponsor. This unique The exhibition, entitled Martell dans la Cit, release of Vintage 1964 was offered for sale means not living forever, but rather
setting provided the backdrop for a spectacular pays tribute to the Martell family and the at Harrods, one of the most prestigious timelessness that belongs to those who
celebration hosted by internationally legacy bequeathed by the numerous trading retailer. In all, just 100 bottles of live in the present.
acclaimed actress Diane Kruger, serving houses located in Cognac. The Winchester Collection are available
for purchase worldwide.

HIGHLIGHTS - The Absolut Company - - Plymouth Gin -

HIGHLIGHTS
HIGHLIGHTS
HOUSE OF ELYX AN ORIGINAL
2.1M 0.2M
STRATEGY
Plymouth Gin has cemented its reputation
cases sold with international travellers as a cases sold
handcrafted Super Premium gin thanks to
+2% -8%
a high-flying campaign. A bar sporting the
Plymouth Gin colours, uniformed servers
and promotional displays all served to
by value enhance the brands visibility at the by value
duty-free shops in Londons Heathrow
+9% +17%
and Gatwick airports.
MARTELL volume in China ROYAL SALUTE volume in Vietnam
Through its innovative House of Elyx concept,

Absolut Elyx provides an optimal environment
for guests to immerse themselves in the brands
To celebrate its 300th anniversary, Martell Assemblage Exclusif 3 culture and unique aesthetics, converting Charity sponsorships Helping the most vulnerable
Martell released de Millsimes, unexpected spaces into venues for exceptional in the world of polo children with Sentebale
four limited-edition blends: a unique blend of three exceptional experiences. From a coppersmith workshop in
eaux-de-vie Grande Champagne, Fins Royal Salute has maintained its ties to polo, Royal Salute was also proud to partner for the
Bois and Borderies each evoking a the New Orleans French Quarter during Tales
Martell Premier Voyage, of the Cocktail to a secluded sculpture garden the worlds oldest team sport and one that fourth consecutive year with Sentebale, a charity
an exquisite new blend of 18 rare eaux-de-vie, different period in the Houses history. continues to expand in the modern era. founded by Britains Prince Harry and Prince
displayed in a stunning artwork designed by in the middle of Manhattan amidst Fashion The brand sponsors more than Seeiso of Lesotho. Sentebale (forget-me-not in
renowned French artist Bernar Venet. Week to a rooftop at Art Basel in Miami, these 15 international tournaments, including Sesotho) works with local grassroots organisations
emotive and dynamic spaces celebrate the - Perrier-Jout - the 2015 title partnership announcement to provide healthcare and education to children
for the prestigious Royal Salute Coronation at risk. This years Sentebale Polo Cup was held in
craftsmanship of the Elyx vodka and the cha- THREE CORE FACETS Cup held annually since 1911. Abu Dhabi in the United Arab Emirates.
racter of its brand. At the Elyx House pop-up in
New Orleans, Elyx launched the Elyx pi- The three core facets that comprise the
neapple-shaped copper vessel, redefining how Perrier-Jout identity Allure, Art Nouveau
its signature cocktails are meant to be enjoyed. and Craftsmanship are all on display in the
The innovative serves enthusiastic reviews, new Belle Epoque Ros Limited Edition,
amplified via the web and social networks, a collaboration with world-renowned
generated significant buzz. The brand conti- Brazilian artist Vik Muniz. The enchanting
nues the tradition and hospitable nature at its design created by the artist, featuring the en-
permanent setting, Elyx House New Yorkset in counter of a Brazilian hummingbird and the
Manhattans Meatpacking District and reinfor- Perrier-Jout anmone in a flowering setting
cing Elyxs luxury positioning, helping to drive was on display at launch events in So Paulo,
long-term brand advocacy and conversion. Paris, Shanghai and Tokyo.
Martell XO Exclusive Tricentenaire Martell Noblige Black Tie

Edition - Ballantines -
A new focus on the arts New digital
and
In addition to the tricentennial releases, the AN EXCLUSIVE OFFER campaign launched
Martell Cordon Bleu Tricentenaire
Limited Edition.
brand has also introduced two limited editions:
Martell Noblige Black Tie, in collaboration
FROM BALLANTINES A collaboration with Los Angeles-based
artist Marcos Lutyens, showcasing his work The power, grace and beauty of horses
with the celebrated fashion designer and stylist entitled Perdurity: A Moving Banquet of were celebrated in a short film featuring an
Jason Wu, and Martell VSOP Paris Style,
The online Ballantines Golf Club offers
Time, reflects Royal Salutes new approach in international polo star and a horse whisperer
created with Jean-Charles de Castelbajac. members unique access to exclusive collaborating with high calibre creatives inspired which kicked off Royal Salutes new global
content, invitation only events and by philosophies around time. A further initiative digital content campaign.
whisky tastings not to mention the includes the collaboration with British architect
chance to meet and hit the links with Sally Mackereth who designed
Royal Salutes Neolithic Bar, featured at the
top players, including the 2014/2015 Wallpaper Handmade show and at
Ballantines Golf Club Captain, the Salone del Mobile in Milan.
professional golfer Ian Poulter.

Chapter
F I N A N C I A L
P E R F O R M A N C E
104 105
Financial performance Interview of Gilles Bogaert
Interview
HOW WOULD YOU DESCRIBE THE the excellent performance of brands like being allocated where theyre most needed,
GROUPS PERFORMANCE DURING Jameson and The Glenlivet, we want to stabi- decisions are being made and implemented
O
THE 2014/2015 FINANCIAL YEAR? lise the Absolut brand over the medium term more rapidly. In financial terms, we can re-
(new campaign, new packaging, refinements port savings totalling 150 million, including
ur operating performance was to the sales strategy, Premiumisation through 110million that had already been generated
positive, with organic growth a greater focus on Elyx) and accelerate devel- by 30June 2015.
of +2% bearing out the grad- opment of both our new growth levers (Martell, Structure costs, meanwhile, have fallen by
ual improvement in sales. Avin, Altos) and our innovations. Were also -3%, and as I mentioned, weve reinvested
Moreover, we met our target strengthening our ability to execute our strat- 25million of that cost savings in our strategic
for organic growth in profit from recurring op- egy in the market, through a partnership with brands and priority innovations. We are going
Despite continued headwinds in the economy during 2014/2015, erations (+2%, which is within the +1% to +3% our wholesalers that represents a key tool for to continue focusing on operational efficiency
Pernod Ricard turned in a solid performance, reflected in strong range we targeted at the start of the year), and improving our future performance. in every area.
we posted strong growth of +12% in net profit
financial results and a healthy rate of growth. from recurring operations (thanks in part to a In China we face a different task: we continue WHAT IS YOUR ASSESSMENT
Gilles Bogaert, Managing Director, Finance & Operations, highly positive currency effect) while chalking to gain market share, but market conditions OF THE PAST YEAR?
provides a more detailed look. up impressive gains in recurring free cash flow. were transformed in the wake of the crackdown
These results were achieved in sound fashion: on conspicuous consumption, with growth G.B.: Recurring free cash flow climbed to
we have not compromised on pricing, where in Premium brands (rather than just prestige 1,154 million, close to our historic high and
weve held steady despite a difficult business brands) and the emergence of new distribution a +38% increase over the previous financial
and competitive environment. We have also channels. So were in the process of developing year. That result, largely attributable to sound
expanded our strategic investment, notably in new brands (Ballantines Finest, Absolut, The management of our working capital needs,
marketing and industrial operations, to secure Glenlivet, champagne, wines, etc.) and restruc- represents an EBIT cash conversion ratio of
long-term growth. turing our sales organisation in order to tackle 88%. That excellent performance came at no
these new challenges. Were confident in our expense to our long-term investments (ad-
WHAT ARE YOUR CURRENT ability to grow our business by close to +5% vertising and promotion expenses, maturing
GROWTH OBJECTIVES? in the United States and +7% to +9% in China inventories and capex).
within the medium term.
G.B.: Well indicate our 2015/2016 organic
growth target for profit from recurring opera- WHAT ABOUT THE ALLEGRO
tions in October 2015, when we announce our PROJECT? HAS IT DELIVERED Key figures
1st quarter results. THE DESIRED RESULTS IN TERMS
+2%
For 2015/2016 were aiming for a continued OF OPERATING EFFICIENCY?
gradual improvement in business activity, in an
environment that will remain challenging and G.B.: Allegro has already made our organ- Organic growth
volatile. As we indicated in June 2015 at our most isation more efficient thanks to the three-fold Sales & Profit from Recurring
recent Capital Market Day, our medium-term strategy of prioritisation, simplification and Operation
objective is organic growth representing +4% mutualisation. And were seeing the benefits
Our operating performance was good, with

to +5% of sales. of this streamlined organisation: resources are
+12%
organic growth of +2% bearing out the gradual HOW WOULD YOU ASSESS
GROWTH IN THE GROUPS
Growth in net profit

improvement in sales. Moreover, we met
our target for organic growth in profit from
PRINCIPAL MARKETS?
G.B.: The upswing in our organic sales

+38%
Recurring free cash flow
recurring operations (+2%, which is within the growth during 2014/2015 is due in large part
to our improved sales performance in China,
+1% to +3% range we targeted at the start of the where sales fell -2% in 2014/2015 compared to For 2015/2016 were HOW DID THE SHARE PRICE
year), and we posted strong growth of +12% a -23% decline in 2013/2014, and in Spain, which
saw a rise in sales for the first time since 2008. aiming for a continued
PERFORM DURING THE FINANCIAL
YEAR?
in net profit from recurring operations and Continued double-digit growth at our affiliate
gradual improvement
in India, which is now the Groups third larg- G.B.: Pernod Ricard shares registered
a strong improvement of our cash flow. est market, also played a key role in this strong in business activity, a truly impressive +18% gain in value for
overall performance. the 2014/2015 financial year, besting both
in an environment that the CAC40 ( +8%) and the Europe Food &
WHAT ACTIONS ARE NEEDED Beverage index (+14%).
TO RESTORE GROWTH IN THE US will remain challenging That strong showing in the market is a result
Gilles Bogaert AND CHINA, THE TWO COUNTRIES
THAT HAVE TRADITIONALLY
and volatile. of Pernod Ricards superior financial manage-
Managing Director, Finance & Operations ment over the period compared to most of its
SERVED AS PERFORMANCE competitors, coupled with macroeconomic
DRIVERS? factors such as European and US monetary
policy. By contrast, the share price lost ground
G.B.: The United States is far and away in August 2015, in light of concerns about Chi-
our biggest market, accounting for 17% of the nese (and hence global) economic growth and
Groups turnover. In addition to maintaining devaluations in emerging currencies.

Financial performance Key figures 2014/2015
Key figures Profit from

recurring operations,
operating margin
Group net profit
from recurring operations
Group net profit
Change
in net debt
2014/2015
1,909 2,114 2,231 2,056 2,238 1,092 1,201 1,228 1,185 1,329 9,038 9,363 8,727 8,353 9,021
1,045 1,146 1,172 1,016 861*
26.0% 26.2%
25.9%
8,558M
25.7%
25.0%
10/11 11/12 12/13(1) 13/14 14/15 10/11 11/12 12/13 (1) 13/14 14/15 10/11 11/12 12/13 13/14 14/15
In euro millions and as % of net sales In euro millions In euro millions
Net * +1,265 M excluding Absolut impairment (+25% vs. 2013/2014)
sales
Sales Profit from recurring
by region operations by region
2,238M
7,643 8,215 8,575 7,945 8,558 1,909 2,114 2,231 2,056 2,238
695 149
746 181
750 189
2,114 2,137 2,132 2,773(2) 2,731 479 470 459 593(3) 608
2,068 2,167 2,316 2,142 2,382 558 582 607 579 632
Profit from
recurring operations
2,711 3,165 3,431 3,031 3,446 684 880 1,016 884 999
10/11 11/12 12/13 13/14 (2) 14/15 (2) 10/11 11/12 12/13 (1) 13/14 (2) 14/15 (2)
In euro millions In euro millions
France Europe Americas Asia/Rest of the World France Europe Americas Asia/Rest of the World
47.8M CASES 11.2M CASES

Net Contribution after advertising 14 strategic spirits 5 Priority
sales and promotion investments and champagne brands (Top 14) Premium wine brands
11.2 6.2 5.1 4.9 4.5 4.0 3.4 2.6 2.1 1.5 1.1 0.7 0.3 0.2 6.0 2.2 2.2 0.5 0.2
7,643 8,215 8,575 7,945 8,558 3,169 3,476 3,707 3,484 3,671
ABSOLUT
BALLANTINES
JAMESON
RICARD
CHIVAS REGAL
HAVANA CLUB
MALIBU
BEEFEATER
MARTELL
KAHLA
THE GLENLIVET
MUMM
PERRIER-JOUT
ROYAL SALUTE
JACOBS CREEK
CAMPO VIEJO
BRANCOTT ESTATE
KENWOOD
GRAFFIGNA
10/11 11/12 12/13 13/14 14/15 10/11 11/12 12/13 13/14 14/15
In millions of 9litre cases
(1) As from 1 July 2013, with retroactive effect from 1 July 2012, Pernod Ricard has applied the amendments to IAS 19 (Employee Benefits) as adopted by the European Union and mandatory for the Group since that
In euro millions date. As a result, the financial statements for financial year 2012/2013 have been restated. (2) France is now included in the Europe operating segment.

Financial performance Key figures 2014/2015
Annual consolidated balance sheet (in euro millions) Annual consolidated income statement (in euro millions)
ASSETS 30.06.2014 30.06.2015 30.06.2014 30.06.2015
NET AMOUNTS Net sales 7,945 8,558
NON-CURRENT ASSETS Cost of sales (2,958) (3,262)
Gross margin after logistics expenses 4,987 5,296
Intangible assets 11,542 12,212
Advertising and promotion investments (1,503) (1,625)
Goodwill 4,907 5,494
Contribution after advertising & promotion investments 3,484 3,671
Property, plant and equipment 2,016 2,200 Structure costs (1,428) (1,433)
Biological assets 150 153 Profit from recurring operations 2,056 2,238
Non-current financial assets 349 512 Other operating income 60 147
Investments in associates 15 16 Other operating expenses (300) (796)
Non-current derivative instruments 63 52 Operating profit 1,817 1,590
Deferred tax assets 1,926 2,339 Financial expenses (561) (554)
Financial income 76 65
NON-CURRENT ASSETS 20,968 22,978
Interest (expense) income (485) (489)
CURRENT ASSETS
Corporate income tax (305) (221)
Inventories and work in progress 4,861 5,351 Share of net profit/(loss) of associates 0 0
Trade receivables 1,051 1,152 Net profit from continuing operations 1,027 880
Income taxes receivable 37 61 Net profit from discontinued operations - -
Other current assets 194 260 Net profit 1,027 880
Current derivative instruments 26 50 Including:
attributable to non-controlling interests 11 19
Cash and cash equivalents 477 545
attributable to equity holders of the parent 1,016 861
CURRENT ASSETS 6,646 7,419
Earnings per share basic (in euros) 3.86 3.26
Assets held for sale 2 1
Earnings per share diluted (in euros) 3.82 3.24
TOTAL ASSETS 27,616 30,398 Net earnings per share from continuing operations 3.86 3.26
(excluding discontinued operations) basic (in euros)
Net earnings per share from continuing operations
(excluding discontinued operations) diluted (in euros) 3.82 3.24
LIABILITIES AND SHAREHOLDERS EQUITY 30.06.2014 30.06.2015 GROUP SHARE OF NET PROFIT FROM RECURRING OPERATIONS 1,185 1,329
SHAREHOLDERS EQUITY GROUP SHARE OF NET PROFIT 1,016 861
Share capital 411 411
Share premium
Retained earnings and currency translation adjustments
3,052
7,142
3,052
8,796
Analysis of business activity by geographic area (in euro millions)
Group net profit 1,016 861 30.06.2014 30.06.2015 ORGANIC GROWTH(1)
Group shareholders equity 11,621 13,121 ASIA AND REST OF THE WORLD
Net sales 3,031 3,446 120 4%
Non-controlling interests 157 167
Gross margin after logistics costs 1,848 2,073 16 1%
TOTAL SHAREHOLDERS EQUITY 11,778 13,288
Advertising and promotion (550) (627) (23) 4%
NON-CURRENT LIABILITIES Contribution after advertising and promotional investments 1,298 1,446 (7) - 1%
Non-current provisions 564 400 PROFIT FROM RECURRING OPERATIONS 884 999 (11) - 1%
Provisions for pensions and other long-term employee benefits 569 654 AMERICAS
Deferred tax liabilities 3,041 3,373 Net sales 2,142 2,382 51 2%
Bonds non-current 6,844 6,958 Gross margin after logistics costs 1,394 1,519 15 1%
Non-current derivative instruments 85 87 Advertising and promotion (412) (478) (27) 7%
Contribution after advertising and promotional investments 982 1,041 (12) -1%
Other non-current financial liabilities 830 500
PROFIT FROM RECURRING OPERATIONS 579 632 11 2%
TOTAL NON-CURRENT LIABILITIES 11,933 11,972
EUROPE(3)
CURRENT LIABILITIES Net sales 2,773 2,731 8 0%
Current provisions 251 173 Gross margin after logistics costs 1,745 1,704 (3) 0%
Trade payables 1,463 1,696 Advertising and promotion (541) (521) 18 - 3%
Income tax payable 56 116 Contribution after advertising and promotional investments 1,204 1,183 15 1%
Other current liabilities 887 920 PROFIT FROM RECURRING OPERATIONS 593 608 33 6%
Other current financial liabilities 290 538
TOTAL 30.06.2014 30.06.2015 ORGANIC GROWTH(1)
Bonds current 929 1,514
Net sales 7,945 8,558 180 2%
Current derivative instruments 29 181
Gross margin after logistics costs 4,987 5,296 27 1%
TOTAL CURRENT LIABILITIES 3,905 5,138 Advertising and promotion (1,503) (1,625) (32) 2%
Liabilities related to assets held for sale 0 0 Contribution after advertising and promotional investments 3,484 3,671 (5) 0%
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 27,616 30,398 PROFIT FROM RECURRING OPERATIONS 2,056 2,238 33 2%
(1) Organic growth is at constant FX and Group structure. (2) France is now included in the Europe operating segment.

Financial performance In the financial markets
In the financial markets Share price of Pernod Ricard and CAC 40 over five years
(at end of June)
Dividend over the last five years
(in euro)
2014/2015
103.60
84.26
85.19
87.70
67.97
Pernod Ricard is traded on the Paris
1.80
1.64
1.64
1.44
1.58
stock exchange on NYSE Euronext SA
Paris Eurolist (compartment A) SRD
(deferred settlement service). The
Pernod Ricard shares made PERNOD RICARD SHARES: Group is included in the CAC 40 index,
4,790
substantial gains during the 2014/2015: A MORE ORDERLY OPERATING accounting for 2% of total market
2014/2015 financial year,
4,423
capitalisation at 30 June 2015.
ENVIRONMENT, WITH IMPROVED CURRENCY
3,982
following a more modest The Pernod Ricard share is eligible
CONDITIONS
3,739
increase in 2013/2014,
3,197
for inclusion in the French share savings
when the spirits industry plan (plan dpargne en actions, PEA)
felt the impact of Chinas At a time of intense market volatility, Pernod Ricard given its distribution network and for the SRD (deferred settlement
efforts to curb conspicuous Pernod Ricards share price markedly and the positioning of its product range. 10/11 11/12 12/13 13/14 14/15 service). 10/11 11/12 12/13 13/14 14/15 (1)
consumption. By the close outpaced competitors during the 2014/2015 Pernod Ricard shares closed at 103.60 euros
of the 2014/2015 tax year, financial year, rising 18.1% the sixth best on 30 June 2015, a year-on-year increase of Pernod Ricard (euros) CAC 40 (points)
the share value was +18%, performance in the Stoxx Europe 600 18.1%. The CAC40 rose 8.3% over the same
outperforming the Groups 2014/2015 dividend
Food & Beverage index, which posted period, hampered by a fall in energy stocks;
competitors in the spirits an overall gain of 14.1%. meanwhile, the collapse in fuel prices Breakdown of share capital A dividend of 1.80 per share for
segment as well as the Stoxx at 30 June 2015
While fears about the prospects for growth (down 43.4%) lent support to hopes that the 2014/2015 financial year will be
Europe 600 Food & Beverage in emerging markets and the resilience of consumer trends would improve. submitted for the approval of the
index as a whole (which rose the US market bred caution in 2013/2014, Pernod Ricard has significantly Shareholders' Meeting of 6 November
+14%). The weaker euro investors were more upbeat during the outperformed the CAC40 over a longer, 2015. This dividend is in line with
(down nearly -19% against 2014/2015 financial year. The Groups shares five-year span as well, rising 23%. Investors 13.1%
1.7% the customary policy of the Group
the US dollar versus a year received an initial boost from the positive have hailed the Groups ability to adapt 6.9% Socit Paul Ricard distributing approximately one third of
earlier) provided a boost to impact of the falling euro, which helped to turmoil in its markets, not to mention 7.5%
Board + Management + Employees + Treasury share the net profit from recurring operations
Pernod Ricard shares, as did restore competitiveness and also yielded the strength of its brand portfolio and 15.0% Groupe Bruxelles Lambert in cash. Taking into account the
hopes for an improved sales a significant transactional impact that the global reach of its distribution interim dividend of 0.82 per share paid
U.S. institutional investors
outlook in China following drove market expectations higher. network, which will enable it to pursue the on 8 July2015, the final dividend payable
the Chinese New Year. Share prices were also buoyed by hopes strategic objectives outlined by Alexandre French institutional investors stands at 0.98 per share and will be
The CAC40 index was for rebounding sales of cognac in China, Ricard: Premiumisation, expansion and 8.4% U.K. institutional investors detached on 17 November 2015 and paid
+8% during the same period. an outcome that would largely benefit innovation. 36.8%
Other institutional investors on 18November 2015.
10.6%
Individual shareholders
Change in the share price over one year in comparison with the CAC 40 index; trading volumes Summary of stock market data
12/13 13/14 14/15
4,790 pts Number of listed shares at 30 June 265,421,592 265,421,592 265,421,592

4,423 pts
103.60 Average number shares (except treasury shares) diluted 266,352,885 265,816,388 265,421,592
87.70 Stock market capitalisation at 30 June (M) 22,611 23,277 27,498
+18%
976 924 Group net profit per share from recurring operations diluted 4.71 4.46 4.99
908
735 731 781
Dividend per share 1.64 1.64 1.80(1)
Pernod Ricard 503 540 541 523
415 Average monthly volume of trades 11,744 12,310 11,569
+8%
CAC 40
130 Highest share price
Lowest share price

101.15
81.34
94.83
78.82
117.25
83.19
September 2014
December 2014
November 2014
Average share price 89.94 86.47 97.96

February 2015
October 2014
January 2015
August 2014
March 2015
April 2015
June 2015
July 2014
May 2015
Share price at 30 June 85.19 87.70 103.60
Pernod Ricard CAC 40 Volume of shares traded (in thousands)

(1) Subject to the Shareholders approval at 6 November 2015.

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Annual Report

Li Wei has photographed 40 employees of the Group in iconic places to celebrate

B RANDS P. 23 P. 87 P. 86/P. 89 MARKE TS

P. 46/P. 47 P. 55 P. 101/P. 103

P. 67/P. 69 P. 100/P. 102 PERNOD RICARD P. 30/P. 31

View how the campaign took shape

Annual Report 2014/2015 Pernod Ricard 2 3

Seven LinkedIn users interview Pernod Ricards

On 11 February 2015, Alexandre Ricard

moment, there needs to be one brand.

What, in concrete terms, is your

Annual Report 2014/2015 Pernod Ricard 8 9

You talk about returning the focus

Im curious to know if your

Annual Report 2014/2015 Pernod Ricard 10 11

A new strategic model:

OPERATIONAL EXCELLENCE PORTFOLIO MANAGEMENT

Optimise our portfolio for maximum

TALENT DEVELOPMENT DIGITAL ACCELERATION

Accelerate the integration of digital

SUSTAINABILITY & RESPONSIBILITY INNOVATION

Lead the industry in sustainability & Experiences, services &

ROUTE TO MARKET/CONSUMER PREMIUMISATION AND LUXURY

Annual Report 2014/2015 Pernod Ricard 12 13

The definition Operational Excellence 01 Joint interview

ARE THERE OPERATIONAL

Joseba Llano Amaya Esteban Adrian Murillo

Raquel Camara Oscar Alvarez

View how the campaign took shape

Around the world - Key figures - - Irish Distillers Ltd -

Annual Report 2014/2015 Pernod Ricard 20 21

copper stills and offers production capacity

Absolut Andy Warhol: I love the bottle, Absolut MakerFest:

Annual Report 2014/2015 Pernod Ricard 22 23

The definition Talents 02 Joint interview

Talents Estelle Rivals

of employees are proud

Elin Nilsson Andreas brink Lina Elg

Petter Andersson Jesper Hult

View how the campaign took shape

Around the world - Pernod Ricard Italia -

New responsibilities Marketing: data with

Annual Report 2014/2015 Pernod Ricard 28 29

-3% +1% +9% -22%

+10% +17% +22% +19%

- Chivas Brothers Ltd -

Annual Report 2014/2015 Pernod Ricard 30 31

Annual Report 2014/2015 Pernod Ricard 32 33

The definition CSR 03 Joint interview

initiatives and best practices are making sig-

employees and boosting the performance leaflets are being distributed

Claire Couttie Callum Wright Karen McGillivray

Steven Anderson Gordon Strathdee Keith Nicoll

View how the campaign took shape

a model based on four areas that its workforce implements

Protect our planet*

Develop our local communities

Empower our employees*

* Figures at 30 June 2015